At a recent USAA arcade auction, I picked up a working Xenophobe for less than a PS2 costs. Got it home and have been working on hacking it. I picked up a Wells-Gardner NTSC<->RGB board out of a DL, got it hooked up to the Xenophobe monitor and hacked in a second set of audio taps (I have the two-channel amp board).
To run Daphne, I have my Sony LDP-1500 sitting on top of the cabinet, my P-133 laptop on it, my hand-made scoreboard in front of the monitor stalk, and a keyboard positioned behind the Xenophobe joysticks. Not an ideal arrangement, but it's playable. I'll probably end up getting an Ipac or something to pass keycodes back up to the laptop from the Xenophobe joysticks.
At the moment, I have to manually move cables from the Xenophobe hardware to the Daphne hardware. Eventually I'll rig up some kind of switch box to cut it over. Of course, I could always leave the Xenophobe unplugged and run MAME.
Very next thing, though, is to get the latest version of Daphne and try out DLE 2.0 with my repro LD.