OK, so I got a parallel switchbox, and two switchbox cables. These are 25 pin male-male cables, so if you're going for a four player control panel you'd need two switchboxes and three cables, i think.
I cut the cable in half, stripped the ends of the 25 wires, and labeled them according to the pins on the cable 1-25. I found out what wires went to what pins using my multimeter, but it may be standards based on wire color also. One cable went to my controls on the control panel. I wrote down what number went to which control - ie #1 - 1 player up, #2 - 1 player right, etc. Ran this cable to the main input of the switchbox. Then ran the two other cables from switch A to the IPAC, and from switch B to the dreamcast controls. I matched up the numbered wires to the appropriate connections on the ipac and controller, and voila! I can switch the control panel back and forth. I used a manual switchbox because it's much cheaper than the auto-sensing kind... If I was motivated I could get that switch externally mounted, but I'll have to open the cabinet to access the dreamcast anyway, so for right now I'm leaving it inside.
Another slightly related tip - I found out that the dreamcast supports VGA PC monitors by default - you just need a VGA cable (ebay again). I've got mine being shipped right now, and when it gets here I'll experiment to make sure it works as expected. If that works I'm going with a 21" VGA monitor in the cab...
-Sean