I'll try to get a pic of the inside of the cp later. Right now we're using 2 xi-mo USB encoders. Have also used arduino boards. Both no lag on joysticks and buttons. We have some zero delay encoders we're trying to get to work as they are half the cost of xin-mos but they aren't just plug and play like the other 2.
Right now I don't really have any favorite games to play on it as it wasn't completed until this morning. On our other cabinet the multiplayer games were a lot of fun like Duckgame, Towerfall, Toto Temple, as well as the retro single player games. Super Pixalo was much easier using our arcade controls w/ no lag vs using an OUYA controller. We have a 2 player setup with double joysticks for our other cabinet and neon shadow was a blast to play against or coop. Emulation is great as well using the app nostalgia for the front end.