The Hagstrom KE72 keyboard encoder is the heart of the Custom Arcade system, and is also available direct from Hagstrom for the do-it-yourselfers. I was fortunate enough to get my hands on one of the first ones (the KE72T), and I thought I'd give everyone a look :)
Hooked up my Happs trackball - see below!
My first impression was "wow" - this looks cool :) About the size of a small PCI expansion card, it's full of well labelled connectors. There are connectors for keyboard, keyboard passthru, mouse/trackball, ps/2 mouse, and of course 72 discrete inputs. Very cool. Click on the picture above to get a full screen view with the ports and connectors labelled. The specs of the encoder are:
KE72  | 
72 input keyboard encoder  | 
$119.95  | 
KE72-T  | 
KE72 with Mouse/Trackball interface  | 
$139.95  | 
KE-MM6-mini  | 
6 pin miniDIN Male/Male Cable, 6 ft.  | 
$ 5.95  | 
KE-TBH3  | 
Happ Controls Trackball to KE72 Cable  | 
$ 9.95  | 
| From left to right, the trackball/mouse interface, and the smaller connector is for the three mouse buttons (and one ground). KE72/T model only. | (Click for a larger view)  | 
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 (Click for a larger view)  | 
My encoder came with the optional Happ Controls trackball interface cable. Guess what I'm ordering tomorrow? :) | 

A few days after I purchased my Happ Controls trackball and such, it arrived in the mail. Very fast shipping. I couldn't wait to build a panel to mount it to, so I temporarily hooked up all the cables and had it perched precariously on my keyboard drawer.
After a minor problem, I had my genuine arcade trackball hooked up to my PC controlling my mouse in Windows. I was psyched! Time to load MAME and try it out. Here my results were mixed at start - it worked immediately, but the control was a bit difficult. However, once I played with Windows mouse settings (reduced sensitivity) and worked with MAME's trackball sensitivity and speed settings, control was greatly improved. I didn't get it to where I think it's perfect, but I think it's possible once I mount the trackball so it's not wobbly, and continue to tweak the settings. The extra analog settings in OptiMAME are going to come in very handy here :)
My original minor problem? I only had X axis control, and no Y axis at all. A bit of head scratching and work with a multimeter showed that one wire on my Y axis cable had a bad crimp - pulled it, snipped it, recrimped it and voila, it worked :) NOTE: Hagstrom Electronics was very helpful troubleshooting, and was ready to send me a replacement for whichever component was at fault... but I couldn't wait :)
The trackball I purchased from Happs
was a translucent blue 3" ball, and it works, well, exactly like an arcade
trackball :)  I didn't order the parts needed to light the trackball
up though, as I didn't realize it was extra...  I've listed the parts
and prices below for those who want to follow suit.  The parts without
a price are the ones I didn't order and can't find prices for yet, but
they're tiny and shouldn't be more than $5 I'd guess.  All in all
I'm very excited about this setup!
 
| 56-0100-12T | 3" translucent blue trackball | $80 | 
| 56-5530-16 | Plate for 3" trackball, painted black wrinkle | $6.25 | 
| 90-1204-00 | nut 10-24 hex w/SEMS (*9) | $.15 each | 
| 43-0149-00 | Carriage bolt 10-24 x 2" black (*9) | $.10 each | 
| 42-0016-00 | Lamp assembly | $? | 
| 90-1005-00 | Screw for lamp assembly | $? | 
| 91-1219-00 | 12 Volt lamp | $? | 
| The trackball cable plugged into the encoder. | (Click for a larger view)  | 
| Closeup of the trackball cable plugged into the trackball, split into X and Y axis cables. Notice that rotten yellow wire on the left :) | (Click for a larger view)  |