It sounds like your Medusa has power supply issues, with perhaps a ground problem and some flaky connections thrown in for good measure. Driver board capacitor C23 and the rectifier board diodes can both cause game resets as described.
http://www.pinrepair.com/bally/index.htmSee: 2. Before Turning the Game On:
The game is 30 years old and most of that needs doing anyway. at least the power supply, driver board, and connector repairs.
"Knowledge is Good." - Emil Faber