Well actually it's more of a combo of buttons. With my configuration above, if I want to do a Save State I have to hold the "hotkey" which is the Select button and then the "save state" button which is the B button. Then to load the save state I hit both Select + X and to exit the emulator i hit both Select + Start.
Also just to clarify, the "#" tells the emulator to ignore all text after it until there is a carriage return (or new line). I use it to put comments in my configuration files so I can easily decipher it later on haha.
Lastly, with that Adafruit display, you might have to manually set the resolution. I've never messed with that but maybe this thread will help:
https://www.raspberrypi.org/forums/viewtopic.php?f=28&t=130564