Let me clear som things up:
1. MAMEWah doesn't do anything when it comes to creating resolutions. MAMEwah/MAME will only use the resolutions window says are available.
To make 15KHz resolutions available to windows you need a tool like powerstrip or an AVGA card.
2. How authentic the game looks on the monitor depends on a lot of factors but the main thing is the monitor tube. If you have an arcade monitor the games will look authentic reagrdless of the frequency you run the monitor at (15KHz, 31KHz etc). PC monitirs are sharper so the game will look sharper (more distinct pixles) regardless of if they can handle 15KHz or not.
3. Second most important factor is scaling/stretching.
To have a game look good on an arcade monitor you need to use integer stretching and no filtering (-video ddraw -nohws in mame). Since monitors are analog devices they don't care about the horizontal resolution. There is no difference in using 640 or 320 pixels horizontally for a 320 pixel game.
Vertical stretching is more tricky. Normally arcade games are displayed with a small black line between the pixels (AKA the scanline effect). If you use a 15KHz (non-interlaced) mode you get these black lines for free but you can get exactly the same effect at 31KHz by just letting mame output every second line as black.
Now to your questions:
So let me get this straight, you can run MAME with a PC monitor on a computer and get the same results as an Arcade Monitor using this new card???
No, the game will look the same as if you run it on a normal PC monitor with scanlines enabled. The benefit with AVGA on PC monitor are the same as with arcade monitors, i.e. built in arcade resolutions so you don't need to use Powerstrip to add them. (adding new resolutions for a PC monitor with powerstrip is very simple)
Does this mean instead of stretching the image in MAME the card will stretch it,
No, the whole idea with an AVGA card is to avoid stretching.
except when it fills the entire screen it will look just as good as the real arcade?
If a game fills the entire screen or not is a completly different issue.
The PC monitor will run the arcade games native resoltion then???
Once again: monitors are analog devices and don't care about pixels.
Does this mean there will be black space along the sides and top because the size may not be 640x480?
No, the AVGA resolutions fills the entire monitor. If the game uses the entire resolution is another matter. e.g. 224 line games will have black borders since the resolutions are 240 pixels.