I am having the same problem. I can launch RA from a command prompt using a zipped rom just fine. However, Launchbox doesn't do anything, aside from increment the play count, when trying to launch a game.
I added -L cores\fceumm_libretro.dll to the command line parameters. I also tried adding an absolute path to the core dll. Unfortunately, nothing happens.
I have also tried using retroarch_debug.exe, which displays a console window when launched, to see what is going on, however it disappears to quick.
That lead me to make a batch file to capture the command being given to retroarch.exe, however, Launchbox refuses to launch .cmd or .bat files, saying the file was not found. I believe this to be an unfortunate programmer decision, as it makes debugging and customization more difficult.
The full command I gave to RA to make it run is:
d:
etroarch
etroarch.exe -L cores\fceumm_libretro.dll "c:\launchbox\games\Nintendo Entertainment System (NES)\Bubble Bobble (USA) [Hack by Dragon Eye Studios v1.0] (~Bubble Bobble Madness).zip"
Aside from specifying the path to retroarch.exe in the actual command the sample command in the manage editors is identical. I wonder, is Launchbox not specifying the path to the ROM?
Please, add some debugging to Launchbox so we can simply resolve these issues.