I'm mostly interested in games like Gauntlet Legends, TMNT, D&D, and MVC2. And how realistic is it to run newer games like SF4 or tekken tag 2?
Maybe you should play around with MAME on your current PC first so your expectations are reasonable.
A $200 PC isn't going to run Gauntlet Legends. You need to get up near 4Ghz to run it.
MVC2 doesn't work in MAME regardless of how fast a processor you have.
It is playable on Demul and Makaron emulators, but those require a good video card.
SF4 arcade ran on the Taito Type X platform which was just a standard PC with embedded windows xp.
There is a version out there that is hacked to run on any PC, but it is only one player.
Just buy the PC game, it's cheap now and will be a much better experience.
I'm not aware of a way to play Tekken Tag Tournament 2 short of installing a PS3 in your cab.
I've replied to other threads like this and given an idea of what to expect from various hardware.
If you search here in the main forum, you'll find more info on horsepower requirements.
Keep in mind that most people use MAME to play games from the early 80's up through the 2D fighters of the 90's like Mortal Kombat.
So when you ask what PC specs you need, the answers are going to lean toward that, not the beast it requires to play newer 3D games.