Hey, what about hacking an Xbox? You can get those for like $150 now and it is a pretty decent machine.
I saw on The Screen Savers where Kevin got an XBox to run MAME.
Has anyone tried that?
I got a MAME'd out Xbox, and lemme tell you, for the most part, it's tight. Of course, the Box is limited by 64MB, so don't expect to run King Of Fighters or anything that is HUGE, but if you wanna play some arcade Gaunlet or TMNT on the couch (XBox built in 4-Player capability really shines right here

) with the homers you can't beat it. Mine also got all the Emus (SNES, NES, Genesis, etc.), and those run flawlessly. Plus, the Box, as with any console, is made for TV, so output is a non-issue.
Conclusion: Great for get togethers being able sit comfortably for hours.....it has it's time and place. Besides, having an Xbox on 'roids will make you the envy of ALL your consloe owning buddies (as if your arcade cab wasn't doing enough

)!