Here're my suggestions:
The PC you are using is too slow for newer games. If you only have the old classics such as Pac-Man, Donkey Kong, Defender, etc. it'll be fine, but if you want to play the Street Fighters or Cruisin' games you need to at least double that processor speed.
Yes the mouse and keyboard can be used simultaneously. And the Joysticks/buttons and trackball can be used simultaneously. And they Joystick/buttons and a regular keyboard can be used simultaneously (I'm operating under the assumption that you really end up getting the I-Pac.
By the way, you will need an Opti-pac for the trackball and spinner, not another I-Pac, but I'm sure you would have figured that out for yourself.
Suggestions for trackball & spinner: Depends on how much work you want to go through and how much money you have. Oscar makes great spinners and in about a week or two he will release his brand new one that will work with all spinner games including Discs of Tron. The spinner can be pulled up or pushed down in addition to the standard spinning motion. Check out his thread currently on the main forum page with a title something like "New Product Sneak Peak"
You have a bunch of options for a trackball. You could just buy a regular Logitech trackball or something, hack it open with a dremel tool and figure out a way to mount it, but it will be the least arcadey feeling and will also not control well. You could get an authentic trackball and mounting plate from Happ. It will be relatively easy to install and will be completely authentic, but it'll set you back about $100. There are other options such as hacking a Crayola Kids-Ball or buying a refurbished Imperial Trackball (highly recommended, about 1/3 the cost, but just as authentic and high-quality of the happ option). I'm not sure where to get the Imperial refurbs and don't know if they're always available so someone else will have to help you out there.
I'm not sure about painting the cabinet either. I'll be laminating mine. Frostillicious has shown very impressive results with paint. Track him down for info.