I got Third Strike yesterday. The gameplay is perfectly fine, but the sprites are discolored.

The lead developer, Haze, has already figured out how to unpack the sprites properly. He wants to get Warzard and JoJo working before the code is distributed, I think.

As for the emulator, you may be downloading the wrong one. There's a hacked variant of the MAME32k 0.64 that supports more games and it's roughly a few years old.