ok well it seems the debug issues only occur when my xbox is connected to my dev pc via crosswire cable. If I have it connected thru the router ( my other tv ) it works fine. On the crossover it hangs during InitializeNetwork() when executing XNetLoadConfigParams( (LPBYTE) &configParams ).
Anyways here is a boring list of things I'm doing.
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Netplay should now work properly and it passes keypresses as well. Not 100% sure, not sure if I care.

No analog yet either. Oddly enough netplay does not confirm that both players have the same ROM loaded so it can make for pretty interesting situations.
Thanks to Kr0tki Bounty Bob is now playable. There are only two working versions of Bounty Bob that I know of. The correct 5200 dump and the cassette version released in the UK. I highly suggest the 5200 version, UK version is a little slower. Set the UK version to PAL for it to work properly.
Record/Playback now works with paddles (0 & 1) when in paddle mode. Yipee! Oddly enough y axis is handled as paddle 1. I'll eventually map this to controller 2 so we can at least have two paddle support.
Switched positioning control of sprites in the skin menu to the left analog stick, that way you don't have to worry about unintentionally lowering the volume of the music.
Changed the config menu around a bit more.
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removed atari_ostype. If anyone can think of a reason to keep it, let me know.
removed pokey_type. We default to pokey_new. Is there any reason not to?
Configuring a new game is pretty easy now. In 98% of the cases you can just press the B button to exit and that's it. Outside of being asked for a cartridge type. The only exceptions would be if you have to switch to PAL mode or turn of high speed SIO.
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Rewind is deactivated when in 130Xe or higher mode (crashes).
Basic Cartridge is set to on when autodetect detects a basic program (not sure why I didn't do this a while ago).
Tweaked the rewind size so now menu graphics should not dissapear in those rare cases.
Savestate load screen is a little more informational when sent to it from the save/record option.
When you save a picture it removes the screenshot save path making it easier to see long names.
bugs
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leftover Record/playback time is incorrect when recording/playing paddle games. (I'll fix it l8r)
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Well today was 5200 analog tweak day and I would have to say it was pretty productive. I messed around with the analog calculations routines in order to try to make certain games (cough*missile*cough*command*coughcough) playable. Here is what I got so far. I musta tried every method I know of before settling in on the one I have now.
Missile Command - I'm pretty satisfied with this one. I can play into the higher levels, no problem. The dpad speed is set to the 2nd fastest speed. The speed is probably a tad slow for people with faster reflexes but too bad!!

Personally I think this is about as close to the 5200 feel it will get.
Star Wars - Not much to say about this except that the stick is now centered. Control should be a little tighter.
Kaboom - I pretty much give up on this one. It's impossible to play with a stick anyways.

Breakout - more controllable, but still too hard for me. Because of the way the game handles the stick I don't think I'll be able to get this any better.
Tennis - Your player won't jump around (ala pengo style) if you press the stick too far.
Centipede - Well I couldn't leave well enough alone. I adjusted this cause I felt the current settings were too sensitive. Personally I'm satisfied with how I got it, it should be more manageable. The dpad speed is about the same as the 5200 to 8-bit conversion.
Asteroids - You still have to press left/right or right/left in order to rotate, but now your ship doesn't spin around, thus killing you. Oh and you won't super thrust when using the shield or hyperspace.

Pole Position - Probably a little more sensitive than I would like. But I have a feeling most people will prefer it as I have it. The dpad is at the 2nd fastest speed.
Gorf - A total waste of my time. I had no luck with it. Just play the digital conversion.
Space Invaders - Probably didn't need to be messed with but I did anyways. The transition between the two ship speeds should be improved. Dig pad uses the slowest speed.
The dpad should be useable in all of the above except for Gorf (meh), Super Breakout, and Kaboom.
I'm currently working on this..
Right now it is just an empty shell that lets you move the cursor around and that's about it. The next step is to attach an action to the buttons. I just wanted to see if I could get it going first.
Of course the next logical step after that would be this.