Sorry I just skimmed the code, you have several repeat / until spacekey() loops within the main loop.
for example
IF ballx < 1
SET TEXT TRANSPARENT
SET TEXT SIZE 20
INK white,black
REPEAT
PASTE IMAGE 3,0,0
TEXT 500,24, "Player 2 Score!"
CENTER TEXT 320,240, "Press Space To Continue Game"
UNTIL SPACEKEY()
balllaunch=1
p2score = p2score + 1
ENDIF
You need to put a cls at the top of these loops as well. So the above code should be.
IF ballx < 1
SET TEXT TRANSPARENT
SET TEXT SIZE 20
INK white,black
REPEAT
CLS
PASTE IMAGE 3,0,0
TEXT 500,24, "Player 2 Score!"
CENTER TEXT 320,240, "Press Space To Continue Game"
UNTIL SPACEKEY()
balllaunch=1
p2score = p2score + 1
ENDIF
dbpro : p166mmx @ 233 : 256mb : sb 128pci : sis onboard