Hmmm.. well i apologize that my post was not appreciated...
#1. I downloaded 87b, and there is nothing in the readme files that say anything about config files being invalid-- atleast I can't find anything anywhere saying that. Infact, the readme file encourages the user to copy folders within their previous MacMame directory over to the new MacMAME directory in your home dir. I was previously using version 77, so I may have missed out on some information over time-- I do not read this message board religiously.
#2. After taking your advice and deleting my config files, I ran Street Fighter II as a test, and the exact same thing happens. I go to INPUT (THIS GAME) and go to assign the numeric keypads 1, 2, and 3 for buttons 1 2 and 3.. and as soon as I select button one, and hit enter and its awaiting keyboard input, it will not register any keystrokes that I enter.. and it sits there forever 'waiting' for a keypress even though I have been hitting many keys over and over and over and over.. until I just have to quit out of macmame.
So again, I am sorry that this question apparently was asked many times.. I went through the last 4 pages of posts and I didn't find anything on this topic... So I would appreciate any help that can be given.
Otherwise, I am going to stick with version 77 since everything worked (including atari roms like 720 that for some reason just stopped working with this new version).
P.S. another side question, is FAST FAST FAST ms. pacman, a separate ROM file, or is it just an additional support file that makes that happen?