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Look at the graphical difference. This is clearly much smoother and more detailed than anything on the original Nintendo or the Super Nintendo.

For comparison:

A screenshot of SuperTux

A screenshot of Super Mario 3 on NES

Not to mention the fact that SuperTux is much higher resolution, and the music is in actual music formats (.ogg) instead of 8-bit audio.

I was always partial to Scorched Tanks. Granted, it was a rip-off. But the graphics were better. I almost killed my brother a couple of times during multi-player.

So basically he claim that if it can run Amiga Bratwurst in 1080 there's not need to upgrade the hardware because hey, it's 1080p?

Omg the graphics! http://www.mobygames.com/game/amiga/bratwurst/screenshots/gameShotId,192350/ ;D

(Actually it's very fun, zooming in and out as you approach each other.
Amiga Roketz looked better but played worse.
And then there was Gravity Force of course.)

What emulators have you tried? It looks like it should work for the most part in Project64. If it doesn't, try Mupen64. You might try different graphics plugins as well to see if it works with those. NGEmu should have everything you need, including plugins.

If that all fails, try the PlayStation version, which I know works. Aside from running at a lower resolution and some other minor differences, it's pretty much the same. Get it from Emuparadise if you can't find a good torrent.

I was in a similar boat to you - console-style multiplayer games on a PC system. In the end, we found quite a few good games:

Little Fighter 2
Simple 2D fighter
Has:
    Gamepad support
    Up to 4 players
    Co-op mode
    Versus Mode
    Modding Community
    Free

GL Tron
Simple 3D arcade game of Tron
Has:
    Gamepad Support
    Up to 4 players
    Open Source

Project 64
N64 Emulator
Some good roms can be found here.
Has:
    Gamepad Support
    Super Smash Brothers!
    Huge catalogue of old games
    Up to 4 players
    Free

Lego Star Wars
Has:
    Gamepad Support
    2 player co-op

To be honest, we only ever played the demo of this, but it seemed a pretty good game, and it's got good reviews.

Frets on Fire
PC Guitar Hero clone
Has:
    Split screen play
    Gamepad/Official Controller Support
    Import Guitar Hero songs
    Open Source
    Community made songs, mods, etc.

A little warning with this one: it takes a while to set up. It should really be considered beta software, and ATM it is going through some developer reorganisation. The official game is still kinda buggy, but there is a good fork available (just hidden away in forums). Will probably become a lot better in a few months time.

If you can get a cheap old PC and get a small LAN together, you'll get a lot more options - there's a lot of good old PC games out there. If you want to game on the cheap, just stick to the older games - Win98 era or so.

Try here:

http://www.emuparadise.org/index2.php

Quite a few game soundtracks to be nabbed here.

I'm very supprised no one has mentioned the m3simply yet. I got mine a few weeks back and it's been awesome. It plays clean NDS roms (unmodified exact copies), runs homebrew, and plays music and movies (needs transcoding) right out of the box. It takes microSD cards and comes with a microSD-usb reader/writer. You can find the microSD chips and the m3simply's online for about the price of two NDS games - not bad. You can then download all 872 games (and counting). The best part is you can play all the wifi games over the internet and locally. You can also check out the compatibility list and this comparison chart.

Happy homebrewing :)

Here's a site that lists a bunch of torrents for the complete soundtracks to various console and PC games: http://www.emuparadise.org/soundtracks/