> what reproduces the original Capcome arcade games more faithfully: Capcom
> Classics Collection on Xbox, or playing those games via XMAME on Xbox?
MAME all the way. I'd say buy the collection just to show your support for decent retro packs, as it's not a TERRIBLE pack at all, but there are some major hitches . For instance, Final Fight has more sluggish control and the music is off.
Doesn't quite compare to Taito's collections (Joukan/Goukan/Classics), but I'd take it over Namco's refried collections any day of the week (though namCollection was nice, if overpriced)