Welcome JC to the world of BYOAC, I hope you enjoy your stay and post lots of pics along the way.
IPAC - you wire the microswitches of the buttons and joysticks to the IPAC, this is then translated to keystrokes which the computer can understand. As Silverwind stated the IPAC is nicely labelled so you don't have to spend too much time configuring things. Of course you can ignore the labels and reconfigure everything later. If you want to have buttons allocated for pause esc tab etc then these will need to be configured. I believe there is a simple program from ultimarc which updates the chip on the IPAC.
OptiPAC - used for optical devices, basically anything with an encoder wheel and optics can be connected to the optipac. A joystick such as the Happs Optical Rotary connects to the IPAC and the OptiPAC.
Get an IPAC to suit your requirements - IPAC2 for 2 players and IPAC4 for 4 (tricky hey). They basically allow for credit, start, directions and 8 buttons for each player. Spinners, trackballs and optical rotary joys can be connected to the optipac. Some are straight forward (Oscar spinners for the optipac) others may require new optics but aparently thats easy (ultimarc has instructions).
Good luck and let us know how you go.
Cheers
-cdbrown