The following are the Dip Switch settings based off of MAME 0.180 source code.
 
Use this information at your own risk!  The information was parsed from the MAME source code and could contain errors as to the state, order or descriptions of what the switches do.  If you find an error, please let me know on the Contact Us form and I will work on correcting the issue. 
 
 
 
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Manufactured by Sega, Released in 1987
ROM Version: SDI - Strategic Defense Initiative (Japan, newer, System 16A, FD1089B 317-0027)
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Dip Switch:SW2
12345678FunctionOption
Off       Allow ContinueOff*
On       On
 Off      Demo SoundsOff
 On      On*
  OnOff    Lives2
  OffOff    3*
  OffOn    4
  OnOn    Free
    OnOff  DifficultyEasy
    OffOn  Hard
    OnOn  Hardest
    OffOff  Normal*
      OffOnBonus Life100000
      OffOff50000*
      OnOffEvery 50000
      OnOnNone
ROM Version: SDI - Strategic Defense Initiative (Japan, old, System 16A, FD1089B 317-0027)
Print
Dip Switch:SW2
12345678FunctionOption
Off       Allow ContinueOff*
On       On
 Off      Demo SoundsOff
 On      On*
  OnOff    Lives2
  OffOff    3*
  OffOn    4
  OnOn    Free
    OnOff  DifficultyEasy
    OffOn  Hard
    OnOn  Hardest
    OffOff  Normal*
      OffOnBonus Life100000
      OffOff50000*
      OnOffEvery 50000
      OnOnNone
ROM Version: SDI - Strategic Defense Initiative (System 16B, FD1089A 317-0028)
Print
Dip Switch:SW2
12345678FunctionOption
Off       Allow ContinueOff*
On       On
 Off      Demo SoundsOff
 On      On*
  OnOff    Lives2
  OffOff    3*
  OffOn    4
  OnOn    Free
    OnOff  DifficultyEasy
    OffOn  Hard
    OnOn  Hardest
    OffOff  Normal*
      OffOnBonus Life100000
      OffOff50000*
      OnOffEvery 50000
      OnOnNone
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