MACUPDATE ADMIN  Latest version of MAME OS X is 1.1.8:

http://www.macupdate.com/info.php/id/24681/mame-os-x

Try that.  
(Version 0.6.1)

MACUPDATE ADMIN  It clearly states in the 'Requirements' that this software (MAME Library) is for MAME OS X, not MacMAME. So, of course it does not work with MacMAME.  
(Version 0.6.1)

JAZZYGUY  You are correct. I was wrong. I then installed Mame OSX and your app did its thing properly. However, I could not import my ROMS with Mame OSX or with your library app had to trash both apps. There was a long list of ROMS in Mame OSX but no way to use them or import or install them.  
(Version 0.6.1)

MACUPDATE ADMIN  Hey, it is not 'my' nor 'our' app. I work for MacUpdate, hence I am 'MacUpdate Admin'. The app 'MAME Library' is the work of its developer.  
(Version 0.6.1)

JOHNNIE WALKER  jazzyguy: The import function isn't for importing games, it's for importing user info about games & collections. This is the same as iTunes' import functions.

What you need to do is:

a) Download MAME OS X, then open the MAME Library preferences & tell MAME Library where MAME OS X is.

b) Again in the MAME Library preferences, tell MAME Library where your ROMs folder is located.

c) Choose the 'File < Update Games from MAME OS X'.

MAME Library will be able to you a list of the available games, and let you launch those games.  
(Version 0.6.1)

JAZZYGUY  Thanks for the help. I'll give it a try!  
(Version 0.6.1)