If you could make this happen, I'd say great work! I wish I could come! but sadly, I don't live anywhere near Modesto ( I live by AI) so it'd be tough to make it there. However, if you were closer I can tell you that by your set up, I'd be there frequently.
To help you out a bit (maybe. Because I'm not to knowledgable on this stuff)...
1) I'm not sure how they do it, maybe DjP knows, but my guess is they know 3rd party dealers that sell them. I doubt Konami themselves would ever have their hand in releasing games in the US that they state shouldn't be done.
2) I have a few cousins up in NorCal that would be interested. I'm sure if you can place the arcade near a High School or College, you'd get some business.
3) Like I said, distance is an issue, if you were to open up within 30 minutes driving from me, I would go.
4) I'm not a tourny player, but there definitely is a crowd for that.
5) hmm. I remember a site called Channel Beat @
www.channelbeat.com . Though I'm not sure what their shipping policy is (like availability to the US). You can find out on your own by contacting them, they have everything from Poppin', Drummania, Guitar Freaks, ParaPara, DDR, In the Groove, Pump it Up, Techno Motion, EZ2Dancer, Dance Maniax, Mambo a GoGo, Taiko no Tatsujin, Keyboardmania, Samba de Amigo, Dream Audition, Shakatto Tambourine, Flash Beats, EZ2Dj, and much more. lol. Basically, they have everything, plus upgrade kits and spare parts.
6)Maybe instead of Consoles, or even have both, you should set up a Net Cafe. They get a lot of attraction from gamers and non gamers alike. The non gamers usually go because they don't have internet access, and spend their time on Myspace, or email. Gamers usually get with friends and have LAN battles right there. (suggested to have 30+ computers).
If you want to go the Console route, you might want to have each major console right now already set up in these rooms with 4 controller availability, and just have the people bring the games. To prevent steeling, you get metal plates that cover the system, keeping it bolted down (they do this with cable boxes for hospital TVs and such if you need reference). Prices should vary depending on the console. Since PS2 doesn't have an online cost, you don't have to charge as much as you would with an XBOX because of XBOX live. You should also keep up to date with consoles as well, or even offer some nostalgic consoles, offering games for "rent" within your console areas. (Super Nintendo, Sega Genesis, Saturn, Atari, etc). Though this can be solved if a Wii is purchased because of their virtual console feature.
This may not help you at all, but just some ideas to think about. lol. I truly wish more arcades that are as well rounded as TGA were available in LA County. Heck, set one up in Montclare or Puente Hills and you have yourself a booming hit. Hope everything goes well for you.