I personally found this totally non-intuitive as well.
Bottom line, just grab the software-list ROMS from Pleasuredome, and it sorts itself out.
At the risk of annoying Mame devs, I think the usability of the internal UI is...... off. But since they're not making a commercial product, I imagine it's waaaaaaaaaaaay down their list of things to do. If it's on it at all.
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