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Thanks.
Unsure of what's causing CD32 pad issue currently, I tested it working fine in WinUAE.
Which button do you mean by 'skip', the Red one? Where does it pause game? Is it an official CD32 pad or adapter? Is this on a real Amiga or emulator?

Real Amiga 1200 + VampireV2 system

DualShock2 joypad via Kipper 2k adapter

Skip key corresponds to X which also pauses not at one point, but continuously.