You don't want to use 1/2", as I don't think they make t-molding to fit that size. Use 3/4".
I actually recently started building a cabinet from scratch (yes me, the eternal convertor is actually building a cabinet from scratch).
Despite the fact that I always scream about using plywood, I looked at furniture grade plywood at the hardware store, and then looked at the price of MDF, and ended up buying MDF.
Man, is it heavy. But it was fairly easy to deal with. We cut my side panels both at the same time using a cordless saw. Had to clean one part up a bit (gave me an excuse to buy a sander anyway), but overall the sides came out great. Routed them for molding with my new router. I used an 1/8" 3 wing slot cutter, mainly because I got that bit in a set of bits which only costs me $10 for the set, while the correct slot bit is like $30 and has to be special ordered. I will have to glue my t-molding in, but it is going to work just fine.
I used a design loosely based on Defender, with one major on purpose change, and several minor differences.
Funny thing is that I am actually building this cab to house a REAL PCB and monitor (either Uo Poko or City Connection), and Mame.