SirPoonga,
Well, the assignments do look strange. For example, after I hit player 1 RIGHT Up on the joystick, it says in mame something like, "2" instead of "R" (or whatever the actual key is). The things popping up on the screen were not what I expected to see.
Then, when I play the game, I think I can run in all directions but I can only fire to the upper left. Can't fire in any other direction (I think pushing the fire joystick in any other direction still makes it just fire to the upper left).
Does that help? If redoing it and making sure it ISN'T paused doesn't fix the problem, I'll pay close attention to what keys show up in the mame control setup, as well as exactly how the player reacts. I'm just going from memory from trying this about a week ago.
Thanks,
Wade