Hmmm....that's weird....I have that same adapter and it works fine under windows. Have you tried on Windows?
I haven't tried it on windows. If I'm using dolphin on my mac, shouldn't all the features work? Don't see why windows would be any different unless I'm missing a driver. Also, openemu recognized both controllers and works perfectly without any extra drivers. Maybe it's something missing in mac version of dolphin?
I'm not sure. Try grabbing the latest dev build, as there was something that looks like a controller fix.
I don't have a working Mac to test on unfortunately.
Post your GCpad confit tabs for controller 1 and 2 so I can see how you have it set up?
Currently this is my gc controller setup. It works for one controller, but when I plugin the other ps2 controller, dolphin uses the input from the first controller so I end up with one joystick controlling both players. example was in the versus character select in tatsunoko vs cap com. The first controller also made the second player have the exact same input. When I try to configure another controller, the buttons don't change. It stays like the image, no matter what setting I choose. The first controller ends up being used for both players. It's very strange.
Under the device drop down bar, do you see an Input/0/ and Input/1/, or just the 0 input?
Only Input/0/Twin USB Joystick
From watching other people on youtube who had different adapters for real gc controllers, I noticed Input/1/ but I never get it in my drop down menu. It very odd. Have any idea what could be the problem?
By the way, thanks for the quick responses. Wasn't sure I'd get any help at all. Nice to know the forums have a nice community.

Yeah, we're pretty active.
Well, the issue is that Input/1/ is the second controller. The issue is that it isn't being recognized by Dolphin at all.
What happens when you just have a controller plugged into port 2?
Well my mac mini has four usb inputs, two being used for my keyboard and mouse which have their own /0/ in the dropdown menu inside dolphin. When I plug in a second controller to my twin usb joystick adapter, nothing happens in dolphin. It has the same inputs when I press buttons from either controller. When I do it in OpenEMU it recognized each controller separately.
So, unless someone who is developing dolphin is willing to look into the issue and resolve it with new code, I think I'm stuck. Either way, I'm thinking about investing in a new wiimote with a nunchuck and a classic controller so I can play all my games. I really wanted to use a second PS2 controller for Brawl just because I prefer that one of the GC controller, but I guess it can't be helped at the moment.

Well, once my exams finish I'll have time to test out my adapter (Wednesday night) to find out if it's a Dolphin, Mac OS X, or adapter not talking to Dolphin issue.