I agree that for most games it doesn't take a powerhouse PC. In my cab now is a 1.2GHz AMD Thunderbird with 512 ram and a 60GB HD. Video is some AGP card I had laying around, so it's nothing fantastic.
I also have mame running on a Medion PC upstairs that I kinda use as a test bed. It's a 2.8GHz system with a gig of ram and NVidia AGP card.
Most games play fine, but I ran into some that had some serious lag, so bad it wasn't even watchable for the game intro let alone playing the game.
I know there are more than this, but this one comes to mind because I just tried it out...
Star Wars Arcade would not run on either the Thunderbird or the Medion 2.8Ghz system. I acquired a new PC from my son because it was 'broke' (ended up only needing a $15 CPU fan) and its a 3.33Ghz Hyperthreading CPU with 2GB ram and I am using the onboard video. It does have a PCI Express video slot but I don't have a spare card for it.
Star Wars Arcade came up an ran just fine. Granted there are known bugs with the version I have, but it wouldn't run on the other systems at all. It was choppy and the sound stuttered so bad I originally marked it as unuse-able but now it looks like a pretty cool game.
There is also a couple of Japanese fighting games that had frame rate issues on my Medion PC and they run just fine on the ASUS board, and as I mentioned, that's with onboard video too and no fancy card.
So like everyone points out, it really depends on what you want to do and play. If you want a classic cab, then 99% of the classic games should play fine with even a super old PC (like my Thunderbird). But if you want to play some newer games, or games like Donkey Kong, then you may want a little more beef.
I want to be able to play certain PC games on my system too, so I want a bit beefer PC in my cab, but that's a personal preference.