Microsoft have said 3 times now that my XBL account has been locked but it's not stopped me getting online yet. They also gave me a 30 days free code so I can create a temp account but the downside of that is that I'll lose my weapon upgrades and all the unlocks
I've not tried in the past few hours but I'll give it a go in a minute and see. When it does get locked I'll post up my temporary gamer tag.
As long as you can run the 360 and control it, you could run it in any cab you like. The image quality might be a bit grody as it'll only run at VGA spec in a Naomi and you'll have to use the 360 joystick (or a modded arcade stick) as the game needs the thumb sticks, and any hack to make it work using the D-pad would make your control and aim terrible. I'm not sure you can even play it using the directional pad. In short I think you'll be better off just plugging it into a TV.