So far OSX runs swimmingly on the G3. Sure, it's not as snappy as later models, but it will do. For the most part it runs MAME fine as well. The only exception being some sluggishness on newer more graphics intensive games. But I don't play many of those, and the ones I do play in general work great. OS 9 really didn't show much performance difference when I tried it. You also don't need the special keyboard, and I've never had problems with it crashing. Little guy runs like a champ actually. I'm pretty much just using what I have around the house, which is macs. If I had access to a bunch of cheap PCs and parts, I'd use them, but I don't.
I actually may be changing this project a bit. A couple things happened this weekend, which make it possible for me to use my old aluminum Powerbook G4, and a 17" LCD monitor for this cab. Firstly, I decided to investigate my "dead" aluminum Powebook to see if I could use it as the guts for another MAME project. Turns out, it's pretty much just the screen that's dead. Other than that, it is running fine so far. Secondly, I scored a 17" Acer monitor in almost perfect condition at a thrift store for $16!
Here's my thrift score. Not a bad haul for under $30...
- 17" LCD monitor
- Nice quality power strip
- Mouse for a potential spinner hack
- Nice sounding computer speakers
- Whacky generic 50 in 1 games pad

Here's the powerbook running MAME, and connected to the used LCD

I figure this new setup has a few bonuses. 1) The cab will be much lighter using the Powerbook, and LCD combo. 2) I can try out Debian and Wah!cade on the Powerbook for some front end goodness. 3) Bigger screen for those more modern games. 4) This frees up the iMac for my next project, an all vertical 1 player bartop. Which suits the iMac's lovely CRT perfectly.
What do you guys think? Am I on the right track here?