Oddly enough, I had the same project in mind. My plan thusfar is to buy a VIA EPIA Mini ITX Motherboard. In case you didn't know, it is a motherboard that is 17cm by 17cm in size. It comes with video out, svideo out, composite out, sound, lan connection, and an 800mhz fanless processor. It all costs around 120. Other than that, all you would need is a harddrive, and memory both of which could be had cheap. As far as controllers are concerned, I have already done several SNES and NES controller to parallel port hacks in the past. I was thinking, since the female controller ports on the front of the NES have all the wires running out the back of them, it wouldn't be hard at all to hack them to a parallel port. All in all it's a pretty straight forward project. The only problems I could see would be with software. Booting right into the emulator, having a menu set up.... I don't know too much about NES emulator stuff... Anyways, I'll be starting my project later this month. Maybe I can post some pictures somewhere or something....