I'm now using a Intel Core 2 Duo (E8400 overclocked to 4GHz). Even with this setup, a game like Gauntlet Legends runs at 80% frame rate until you switch from a 32bit to a 64bit OS. If you want to run something like Street Fighter 4 for PC, you will be spending at least $100 on a good DirectX 10 card.
This thread has some good numbers on the performance of different games at 4GHz:
http://forum.arcadecontrols.com/index.php?topic=72776.0FYI: Since I already had the hard drive, DVD drive, & crap video card, the whole computer only cost $400 after rebates from newegg.com - just make sure to look at the combo deals.
Here's what I'm using...
RAIDMAX SMILODON ATX-612WBP ATX Mid Tower Computer Case With 500W Power Supply
GIGABYTE GA-EP45-UD3P LGA 775 Intel P45 ATX Intel Motherboard
Intel Core 2 Duo E8400 Wolfdale 3.0GHz 65W Dual-Core Processor
XIGMATEK HDT-S1283 120mm Rifle CPU Cooler
G.SKILL 4GB (2 x 2GB) 240-Pin DDR2 SDRAM DDR2 1000 (PC2 8000) Memory