I was getting the same exact problem. I managed to get one game to work, but all the others gave me that problem. Maybe it happens when someone with the new SFIII version, build, or whatever you call it, tries to play someone with the last SFIII that came out with the messed up colors, or something.
Nope, its a connection problem, restart your MAME and have the other guy restart his too.
so i take ur all play with ur keybaords ? 
tbh before lag kicks in [maybe cause bros on wireless] it is better than XBL, for some reason xbl seems much choppy and bulky, this is really frisky and fast
i can do an SPD with keyboard… am i cool?
…I actually did a Air to ground combo, ended with a Shin-Shoryuken with my hands on home row- MEXICAN STYLE… I’m awesome.
what’s SF3:3S (alt) and Jojo’s Bizzare (alt)
Probably the non-US versions.
read the thread. no help requests stupid.
Is project justice cps3?
no
only SF3, Warzard and JOjo
lag kicks in after 1-2 games. but for the first game, its better than XBL, so im gonna assume thats the potential of the final release. yay
If anyone has a moment to chat please PM or email me…littlesparrows at gmail dot com.
Updated Mame32 w/ Haze?s changes (as of June 25th)
http://mame32qa.classicgaming.gamespy.com/
Hope somebody can implement netplay on this version.
^ thanks man, updates only effect wizard earth dont they ? or is there stuff for SF3?
I’m assumed is for every CPS3 games. I have to try it out and see…
For those who are interested in updates or screens on how the emulator is progressing, here is a link:
New mame++ compilation with latest Haze driver at http://www.mugenfury.com
No more problems after the first closed online sf3 game ^^
What haze changes? There’s been like no updates.
See his comments page.
I just noticed the updated pics for Elsemi’s emulator and it looks like he’s fixed the opponent select and grading screen in 3rd Strike…