I'm able to do it in mame 0.122. Edit mame.ini so mouse is enabled (or pbobble.ini), start game, tab, "Input (this game)", P1 left, enter, left arrow (just so I can play with keyboard/key encoder), wait until mame registers it, enter, spin spinner counter clockwise, wait, repeat for p1 right. If you don't have the TT2, TT-HL, or the SpinTrak, you'll have to spin really fast; if your do have one of the afor mentioned high res spinners, a gentle spin should work.
If you can't get the high res spinner to work, try moving the mouse, and then hand editing the pbobble.cfg file to remove the Y axis stuff. (More details if requested.)
Problem: You will not be able to adjust the speed / sensitivity of the spinner. If you have a low res spinner, it might move the pointer too slow for your liking. If you have a high res spinner, it might be too rast for your liking.