All PAL Sega Dreamcast units can play burnt .cdi hombrewgames. You may want to check here if yours isn't a PAL unit:
http://dcemulation.com/article-supported.htm
For homebrew development, you'll need either a Dreamcast Coders Cable (cable which connects your dreamcast to a PC via serial connection) or a BroadBand Adapter, which can go for a lot on eBay.
Here's the software for development:
Dreamcast Development Environment - R3:
You may also want to check out this thread of links:
http://dcemulation.com/phpBB/viewtopic.php?t=28240
I hope that helps some.
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