SNK Arcade Classics (PS2): Emulation so bad it made me want to go to Terminal Reality and find whoever programmed this to kick him in the nuts.
I suspect the missing blood in the SNK collections is due to them using a US bios for their emulation. I always wanted to hack the games and see if this was the case (modifying the bios file to load a different region one.)
A big part of the problem is that the US division was utterly clueless about half the content being released. Japan would send them something, they'd package it, toss it out with only minimal QA work, and then sit around wondering why people are so pissed off. Arcade Classics fared even worse because it was a quick cash-and-grab on their part, handled entirely by SNK Playmore USA, and handled with the same level of ineptitude.
Just judging from past interviews, and situations like the one detailed at
http://z13.invisionfree.com/kikouken/index.php?showtopic=489, I'm inclined to pin a lot of the blame on Ben Herman. Maybe it's just coincidence, but it seems like SNK regained a lot of their former vitality and presence in North America after he left the company in 2008.