If you have an AGP x4/x8 on your PC, try a Radeon 9250 or a Radeon 9550 from any manufacturer. I have used them both and they are plenty powerful enough for MAME. If you do a little research you can find them for around $30 - $80 brand new. The 9250 (Kaser brand)I got at Fry's on sale for less than $50. The 9550 (MSI brand) I got from Newegg for $52 plus shipping. My Radeon 9550 can do MAME, and some PC gaming like Painkiller, Halo, etc. and I can also watch DVDs from my PC.
As for my TV, I got a 27" Sharp 27C240 on sale from hhgregg in atlanta for around $150 plus tax. Works great!
Hope this helps...Happy Gaming...
