You'll find info on pretty much everything you need on these forums. Search, and FAQ's, will pretty much cover everything. Please take note of the recent, excellent, diagram for wiring encoders in the FAQ forum. If you do a search, there's another thread that covers what type drills you'll need and the sizes.
You can post a design and ask for critique, and the members will generally tell you if something's not going to work like you thought. You can also find plenty of other's designs that way.
You can buy and build a 4-player, but you might want to reflect on how often you'll actually use it. These are big, twice the expense roughly, and TBH, most people say they don't use the extra 2 players and end up redoing a 2-player.
Trackball is used for a variety of "Must-have" games like: Missle Command and Crystal Castles. It also works very well as a mouse when in windows or navigating some front ends like MameUI.
Edit 2:
You might want to spend a bit of time thinking about swappable control panels too, at some point, the addiction will get you, and you'll be wanting more elegant solutions. I'd suggest thinking about it. I say this out of the voice of experience: I bought a Hotrod, then bought a Slikstick 2-player blank(Ended up costing me $1000 after I put the controls in), and here I am in the planning stages of doing swappable panels because the 5' long thing is too unweildy and inelegant. Just wanted to throw that out there so you have the option of avoiding my expensive mistakes.
Edit:
The buttons can be a number of things. Some people put a pause button up there, some an escape button. A specific pattern of 5 buttons are the duplication of Asteroid's controls, which is a very popular option.