I never knew there was a 1.7Ghz version of the P3 (I thought 1.4Ghz wa the fastest).
Clock for clock, the P3 is faster than a P4. (P3 core went on to become the Pentium M and then CoreDuo/Core2Duo while the P4 core was ultimately dropped. Last iteration of P4 core was the previous Xeon MP ).
That being said, you can get better performance with the dual P3 system (most likely). I don't know if Mame uses SIMD calls like SSE2, P3 will only support SSE.
Good luck,
Alex