The problem persists in windowed mode and also when I mess with Direct3d settings.

I finally just gave up and installed Project64 2.1 and its launched through romshelf perfectly. Either way, thanks for help in the matter.

Thanks again for your help, crissz.

I made the changes to reflect what you said to the same resolutions and 16bit for Project64 and 32bit for Romshelf but now I get the following error:

"Direct3D failed to initialize
Error code: 88760868
D3DERR_DEVICELOST"

Not sure if the following will help:
-Running Windows 7 32bit
-NIVIDA GeForce 6200 TurboCache 1GB
-I have directX11 with all enabled: DirectDraw Acceleration, Direct 3D Acceleration, and AGP Texture Acceleration

It still didn't work with and without quotes but thank you anyways for your help.

I only tried Mupen64pp.exe because Project64 1.6 would give me an error about Direct3d unable to launch in Romshelf but if I tried launching the game outside of Romshelf Project64 1.6 would run the game perfectly.

I guys,

I'm having a problem with launching Mupen64pp.exe with Romshelf. Romshelf recognizes my 64 roms and lunches mupen64 but dose not load a rom automatically.

For Launch Parameters I've tried:
"[ROMFILE]"
[ROMFILE]
and
-cart "[ROMFILE]"

Any idea what I'm missing? Thanks in advance.