As far as why GE uses a single controller? Not sure. Since multiplayer can have from 1-6 players, maybe they thought 2 controllers would confuse things. Changing it to use both controllers would probably be hard, but I haven't worked in that area much so I don't know for sure.
Anyways, I checked into some of the basics of the hit/mis routine and made some notes which are attached. I'm not sure the notes will be of any help what so ever; they may even confuse you more than ever 
It also includes a savestate from the pSX emulator in order to follow along with the notes.
You know what would be ultimate cool? Finding a way to transfer the LoF 3D scenes into Grand Edition. I'm sure that would be quite a lot of work, but wouldn't it be neat?!!
Edit: Attachment moved to next post
Anyways, I checked into some of the basics of the hit/mis routine and made some notes which are attached. I'm not sure the notes will be of any help what so ever; they may even confuse you more than ever
It also includes a savestate from the pSX emulator in order to follow along with the notes.You know what would be ultimate cool? Finding a way to transfer the LoF 3D scenes into Grand Edition. I'm sure that would be quite a lot of work, but wouldn't it be neat?!!
Edit: Attachment moved to next post