If yopu want, you can get a used 21 Inch PC monitor for less than $100 on Ebay. I found one locally and it was $50 total, since I could pick it up. Just another idea for you.
That 500 mhz machine *should* run most NEO GEO games (i.e. Metal Slug). SF2 will probably run a little jumpy though. I built a cab for my brother's family using a 600 mhz machine with 192 MB of memory and although it ran 95% of the mame roms, it was pretty easy to push the top edge of performance. Forget about Midway games (Mortal Kombat, NBA JAM, etc). And doubly forget and CHD (compressed hard drive) game like Area 51. You will need a top of the line rig to begin to run those at 50%.
WHY would Streetfighter 2 be jumpy? CPS1 emulation is not that CPU intensive, and I DEFINITELY remember playing all the emulated Capcom games back when I had a 233 mhz K6 processor (and they ran full speed).
Also, I suggest using Mame version .60 on that processor, newer mame=slower mame. Sure they add new games in the new versions, but many of those new games won't be playable on your hardware, and general slowdowns will render many of the games that WOULD play correctly on .60 unplayable.
There is no AVERAGE cost to a Mame system.
Approximate costs of mine have been.
Amazing Mame (horizontal monitor, 2 joysticks, 6 buttons per player). $300
Galaga (vertical monitor, 4-way joystick, 2 buttons). $120
Gorf cocktail $150 (I did not personally build this, I simply traded something for it, and I paid $150 originally for what I traded).
Space Firebird mini (vertical monitor, 8-way joystick, 2 buttons). $100ish (hard to put an exact price on, since I reused an older computer that I once paid A LOT of money for, but is now worth jack, truth be told I didn't actually spend a dime on it, everything was surplus, free, or otherwise recycled).
Solitaire mini (trackball cabinet). $92
Battlezone (unfinished, but I have everthing I need to finish it). $30 (yes, $30).
Building from scratch usually adds a good $400 to the cost of the project.
Now onto vending roms?
Question one, why? You aren't going to be putting your Mame cabinet out on location, that is for sure (as far as I know there are not any location secure frontends anyway). So that only leaves the option that you want to charge your friends. Now if you are the kind of guy who would charge his buddies, then you are probably the kind of guy who wouldn't care if it was legal.
Now more on vending roms. I have (via web and in person), spoken to several operators who actually DO have Mame cabinets out on location, but they ARE NOT multi-game cabinets. Every one of them runs a single game that also has a broken PCB inside. So regardless of the legalities, people ARE doing it, and anyway, I think that actually IS legal according to recent rulings (there is a thread around here somewhere), having to do with protection on software for obsolete computer systems.
Now more on that. Operators largely don't care about legalities anyway. They bought and ran bootleg kits back in 1982, they did it in 1992, and they still do it today, (although the bootleg market is a lot smaller today, mostly Neo Geo stuff, and classic "Multigame" JAMMA boards).