hi, just following up on a very old topic!
Latest retropie build from the retropie site -downloaded sept 22. I have an ipac 2 and a physical joystick, that works Left Right Up Down and fire in all other retroarch emulators.
I initially had the same issue - I've set the keyboard to port 3 as above, and kempston as port 1 and both lr-fuse, and fuse, 'sees' the L R U D and fire inputs as kempston.
However - when I press a direction the game i'm playing pauses. Same if i use the usb keyboard attached. I've tried changing the options/time to release the key in MS and it seems related. its almost as if a direction key, holds down the key and freezes the emulator or game, until I move in another direction and so on.
I just tried port 1 to retropad and used the arrow keys on the usb keyboard - same effect.
Any advice please welcome how i can address this!
thanks