If you mean X-Arcade, it works just fine with peg2 as a PS2 keyboard (with pass through for PS2 keyboard, which can be used to change which keys each button works as)
So basically it works as a keyboard. If a program/game supports keyboard controls, it works with X-Arcade.
With a separately sold USB adaptor (which also works just fine with peg2) it can be mapped to joystick(s) too, and it also makes it hotpluggable.