500MHz is probably pushing it a bit, but as a comparison, BBH told me 
that his PC runs CPS-2 games in MAME at a frameskip of around 3 with 
sound enabled.  His PC runs at 450MHz, btw.
<p>
Video cards can make a difference in MAME's performance, although the 
difference these days is pretty minor.  A GeForce 2 based card is 
perfectly fine (I have a cheapo 32MB TNT2 M64, which works 
brilliantly with MAME).  The problem you mention does sound somewhat 
like a common timing problem with DOS MAME running under Windows.  
Easily fixed, just use a Win32 version of MAME (either Win32 console 
or MAME32).
<p>
RAM should be fine for most games, although the Neo Geo games with 
encrypted GFX will take some time to start up.  
<p>
Also, before anyone gets any strange ideas, while it's true that 
Direct3D support is being worked for MAME, this does NOT mean that 3D 
games will be 3D accelerated.  Simple reason is that it would be 
inaccurate to the arcade.  
And no, that doesn't mean that 3D arcade hardware isn't being worked 
on for MAME either.  
-- 
bsr@hnpl.net