By placing each Paster to each player, you were getting the odd visual effect because the Paster objects' hot spots were top left - you were effectively putting the player at the top left of each side of the split screen. The attached file has that changed and also uses Clamp to make sure that the Paster objects don't fall outside the layout.
Edit to add that this sort of thing is best asked in the How Do I forum. Hope this helps!
Many many thanks Colludium.
Hey do you know if this site allows you to award people like a point system? The site I used to be on does and this forum is awfully similar to the old one.