Here's a great question: How is the music going to be handled for this port? Seems to me the easiest way is to do redbook tracks of the actual arcade music. But that would mean this would have to be an ISO/CD game.
I intend on using the four-channel music player I've developed for the PCE, which is loosely based on Trilinear's old code and Bt Garner's snd.c. To convert the music, a tool called mid2tgm will be used with modified versions of soundtracks I've found on vgmusic.com's website. The game will be a normal hucard image, and will be the first game by me to be built on the NeoHuCard developed by myself, Dave Shadoff, and Charles MacDonald.
As far as Taito goes, I plan on licensing the name once it's near completion. Just presenting the idea right now is rather fruitless, but presenting it when it's a viable product will be a lot more effective in making it completely legal.