1) wot price range will this come to. just estimate
Mine cost less then $1000 total, but I don't have a steering wheel and used emulators instead of connecting consoles. If money is very tight then I'd recommend just building a basic cab and upgrading it later, if you scrimp and save you can build a cab for around $300-400.
2) my being crap at woodwork, is it worth building from scratch + how difficult is it for a newbie like me
My woodworking experience before starting this project was 1 woodworking class in highschool 8 years ago, and I didn't think this project was too difficult. If you follow saints book, then you should't have much of a problem. Just make sure to measure 2 or 3 times before you cut and take your time.
3) wot games might i be missing out with 2 ghz computer
you'll only be missing out on a few of the newest games.
4) width wise how much room does a cabinet take up?
Depends on what plans you use, Lusids plans (the one from Saints book) is around 34'' wide and 40'' deep (including control panel width)
5) how to convince parents to give me the space for the cabinet
can't help you there, but my guess is you'd have to keep it in your room.
6) can a ps2 be hooked up easy? any switching of wires or something?
A few keyboard encoders (like the IPac) have adapters to connect your controls to a ps2 or xbox, so thats pretty easy. Connecting your ps2 or xbox to a computer monitor requires a seperate adapter which I'm sure you can find with a search.
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One more thing, why do you say "wot" instead of "what"? That just bugs the crap out of me, its only 1 more letter so your not saving much time typing wot. I also read car forums so, to me, "wot" means "wide open throttle" or gas pedal pressed to the floor.