Your layout is correct. I used to play with the default dreamcast layout. Square 2X2 layout until I found out about the true arcade layout. When I switched the HS from the bottom right button and moved it beside the S button, it messed with my head for days. I was screwing up combos left and right. It’s really hard to adjust to a new layout after you are used to another one. I have the P and K buttons reversed right now. I don’t want to have to torture myself for another week relearning subliminal button combos.
It’s definately a good idea to get started on the right foot (or should I say button layout) Also, the way the button are in the arcade, makes FCD alot easier than the dreamcast default.