From a MAME FAQ regarding Food Fight:
The first time you run the game, it will say NVRAM FAILED:.... Press P1 - Button 1 to proceed. The NVRAM will be automatically initialized.
Have you tried this?
Edit: Hmm, I can *SEE* the switcher in your test rig... Check this thread... Looks like there is an issue with NVRAM updating when powered by a switcher. Have you tried this with an actual ARII power supply? http://forums.arcade-museum.com/showthread.php?p=1528107