I don't think Neo-Geo games with encrypted graphic roms work on DOS MAME. I was trying to run Prehistoric Isle II on it but I was getting garbled colors like that too. I had to use MAME32 to record on it.(posted 8416 days ago)games with encrypted C roms: kof99, preisle2, ganryu (and Strikers 1945 Plus, which will likely be supported in the next version. the MAME team will probably wait on Nightmare in the Dark and Sengoku 3)
it's anybody guess as to whether MAME will support the unencrypted versions instead of the encrypted ones in the future (Kawaks has a utility that decrypts the roms)
-BBH