I'm using - a Pi 2 - the latest version of PiPlay - HDMI audio
Most sounds work perfectly including for games like SF2 where the sound was pretty choppy on the Pi 1B. However for Sonic the Hedgehog on the Genesis I'm getting crackly sound for the bass - the main melody line is ok.
I was working with a B+ and had a ton of audio issues, sounds like what you are describing. In my case I was just running MAME4ALL and it all had to do with how hard the CPU was working. I was trying to do a vertical in setup which requires the Pi to do extra emulation for the screen rotation. This seemed to cause the audio to breakup. First switch I made was to use a USB audio card, to all it to do the audio processing. I got that all working well, then I switched monitors and the audio issue was back again. As it would turn out, I wasn't running the monitor at it's native resolution, which required more CPU power, manifesting it poor audio. If I ran the monitor in it's native resolution, wall was fine. Audio problems varied by games, but for me I found that Donkey Kong was the worst, so that was my test game. Once I got things setup so that Donkey Kong worked, everything else was fine.