Hi,
At the same clock speed, a pentium 3 is significantly faster than the celeron (i.e. a 800Mhz P3 is faster than a 800Mhz Celeron). However, the Celeron was vastly cheaper - not sure how much nowadays.
a 900Mhz Celeron will be faster than a 650 Mhz P3, I'm estimating, at most day-to-day tasks. However, there will still be some specific tasks that may better suit the P3.
Either will play all the classics in mame with no problems at all. Newer games is much harder to guage, as they tend to get slower with new Mame versions (as emulation accuracy is increased).
However, I believe metalslug will play fine on a 900Mhz P3 and I imagine on a Celeron 900Mhz too. I would recommend though getting more memory than 128meg. A lot of neo-geo games (e.g. metal slug series) use loads of ram, and you will find having 256megs of ram (or more preferably) probably more helpful than a faster processor. Especially if you are planning on Windows XP.