Ok first you need the dk2 driver exe http://www.des.co.uk/support, if it says you already have an updated version of this, you will still be good to go
Rename the update folder to Daytona
Think it needs to be C:\Sega
Should have it like
C:\Sega\assets
C:\Sega\Daytona
C:\Sega\shell
Now create a folder called ShellData C:\Sega\ShellData
Create a folder called GameData C:\Sega\GameData
Now goto shell and deploy and copy config file to c:\Sega\GameData
Goto shell folder and run shell.exe
You should get some screen about security dongle error if you press T you will get test menu and Y is service menu
Exit out of that and it creates some files you needed
You should have
C:\Sega\assets
C:\Sega\Daytona
C:\Sega\GameData
C:\Sega\shell
C:\Sega\ShellData
Now I'm pretty sure shell.exe creates this file and you can modify with test menu but go to
C:\Sega\ShellData\GameSettings.ini
And make sure you have
TOTAL CABINETS=1
If you have
CHAMPIONSHIP MODE=YES then xbox controller does a little extra at start
Now check that shelldata.ini has this in
C:\Sega\ShellData or similar
[Credit]
Freeplay = 1
[Network]
CabinetID=1
NumCabinets=1
Now finally you need to hex edit Daytona.exe in the Daytona folder. this means copy and paste Daytona.exe to the other Daytona.exe in the Daytona folder.
Offset 0xDCA97: 0F 85 BC 00 00 00 38 05 C8 F9 5A 01 0F 85 B0 00 00 00 becomes 90 90 90 90 90 90 38 05 C8 F9 5A 01 90 90 90 90 90 90
And that's all. Game should load up and work. This all worked for me :), just need to fix controls now.