I am planning on buying a trackball soon and have a few questions. I searched though the board, but couldnt really make out anything. Could be because it's late.
Go to advanced search and increase the max number of days. "trackball happs" or "trackball wico" should do it.
First I am trying to decide between the Golden Tee, and the High-Ball Trackball.
I have a 3/4" MDF cp, with 1/8" lexan.
Golden Tee TB (aka high lip): cut the 3" hole in the lexan, use a mounting plate, and the top the the lip will be level with the top of the lexan.
High Ball TB: the top of the lip will be ~1/16"-1/8" below the top of the lexan, so you'll need to smooth and curve the inside of the hole. More work, but the ball will be higher that with the golden tee.
What I plan to do is cut out the shape of the trackball in the wood, and then drill a hole in the lexan and mount the trackball with a mounting plate. I would rather not cut the wood but it seems that i have no choice. If I where to buy a mounting kit would I still have to cut the wood? Seems that's the point of buying one (So I dont have too.) but I'm unsure about this.
You need the cut the wood. The TB case gets in the way. They are designed to be mounted on metal CP of ~1/16" to 3/16" thick; and wood that thin isn't strong enough.

No need to drill a 3" hole in the wood, though, since the cutout is bigger.
5.25"x5.25" well measured is fine for either happs TBs (5.75" for wico or betson); but you can go a little bigger for leeway. Looks like you can cut as big as 6.25" for the high ball mounting plate, but you don't need to cut any bigger than the other. If you cut the "football" shape instead of square, make sure it's in the right direction.
I cut the football before I routered ~1/16" to counter sink the mounting plate so I could see the lines, but put the "football" back in the cutout to help keep the router level.
About the Oscar USB mouse interface. Will this allow 2 players to use the trackball or just 1? What I mean is say me and a friend are playing centipede. After my turn will he/she be able to play as player2?
This really depends on the game, game driver, and game dipswitch settings. I the original centiped game, player 1 & 2 had to switch off using the same trackball*, and that's fine for oscar's interface. I hope I am addressing what you mean.
*Except for the cocktail game in cocktail mode, where the players used different trackballs.