I'm sure Myth does have a front end for mame (Sage also has support for mame games). For my purposes tho I'm most likely going to leave it Windows (if I do make it my Sage client in that room, odds are likely that I will, also double as my DVD player in there as well). If I switch to Linux on the box, I'll have to wait for the linux client that Frey is in the process of making for Sage. I guess I really need to sit down and figure out what the worst-case is going to be on the machine, and if I'm going to have it pull double-duty as my TV for that room (it's most likely going in the PC room in our new house, hopefully I'll have the machine almost done when we move in there).
The only part of removing the Dell from it's chassis I don't really like is the cooling they use. Passive heatsink with a plastic shroud & a fan mounted in the end. I guess I could always stick a good CPU HS/Fan on there for that tho.
As for the memory & Proc, I'm going to try it with the 512 I have now, and probalby the 2.53 proc and just see how bad stuff like Area51 play. Like I said though, it works fine on my 3.4. If it plays alright on the 2.53, I'll just leave it at that and put the 3.06 in the Sage client for our HD tv (you need all the HP you can get on HTPC machines, for ffdshow's filters and stuff).
I've worked alot with MCE2005 (I was a beta for Microsoft, they even supplied a HTPC for my testing and let me keep it after the beta was done

). I've tried playing with GameEx, but had problems on my XP Pro PC that I tried it on (crashes on execution, can't remember the error).
With the cabinet being made of relatively thick wood, how bad would some of the bigger OCer friendly fans sound through the case? I have a few around the house that are actually pretty noisy, would you still hear them? I'm planning on putting a thermally controlled fan in the top of the case venting out, and a few mesh-covered slots in the bottom of the back door for air intake.