Instead of dgen use picodrive - it plays all megadrive/genesis and sega CD games 100% perfect plus sleep mode works!
For 2D fighting you can't go wrong with NJ's arcade emulators (CPS1, CPS2 and Neo Geo).... games like Marvel Vs Capcom, Street Fighter Alpha3, Samurai Sowdown etc etc all work perfect.
For 3D fighting games then the built in PS1 emulation is fantastic - so games like Soul Blade, Tekken 3, Street FIghter Ex2 etc all work spot on. There not my cup of tea but the ps1 also has some good rpgs too.
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