did you try "mame raiden -joy XXXX"(posted 8948 days ago)where XXXX is your joystick type from the readme.txt file. dos mame does not work with a joystick by default.
I couldn't get your raiden playback to work with dos36b16 or win36 final (but that doesn't mean it does not work!) i just don't keep every windows executables around since they are a pain to use multiple versions with, so i don't have win36b16.exe. maybe someone who does can get it to playback...