Modder ShaolinDrunkard has given an Xbox 360 controller an awesome partly-retro, partly-modern makeover. So its got a classic old-style arcade layout with proper game cabinet-style buttons, and is housed in a chunky oak box. But then each button has bright LED backlighting, and the joystick has a neat Xbox green glow. Excellent, we think. Would make playing those old arcade games feel so much more authentic. Shame it's a one-off. [Technabob]
I built an arcade controller when the 360 first came out. Wireless, two joysticks (one with top fire for Geometry wars and Mutant Storm) and 7 buttons (hybrid SNG/Street Fighter layout). When SFII came out I had to redo the button configuration a bit, but it's been sitting idle for a while since no good arcade games have been trickling out on Live. It last saw use with PacMan CE.
The hardest part was the Guide button. I used a wireless controller for the circuit board, and ran fiber optic lines from a cut Toslink cable to a clear controller button....it was a bit weak, but I didn't have the skill to replace the SMT LEDs on the board. Other small issues were the headset input and batteries, but I built in a Plug and charge kit and an aftermarket headset adapater to allow the use of standard headphones and a standard USB cable for charging.
My case is scrappy though....it's particle board (standard fare for an arcade cab) with T moulding and a plexi top.