A while ago, Peter and I built a RPi based Picade box. It was a lot of fun! We had some issues with sound though, with a lot of static and clicking noises. After some digging, I ended up with the following configurations:
# Enable audio (loads snd_bcm2835) dtparam=audio=on overscan_scale=1 # Try to fix sound disable_audio_dither=1 audio_pwm_mode=2 hdmi_drive=2
I'm not sure exactly which ones are absolutely necessary, but the above works well for us.