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a) I have ordered a 12v to 240v inverter to run the DC then i read some people doing different **** on this site. Tihs will work right? Its just large, cumbersome and not specific to the task?
As long as your dreamcast uses 240 volts it should work fine.
Is the lilliput you are getting vga? If so, they make a nice vga adapter for the dreamcast which would look very nice.
Also, are you aware of the homebrew dreamcast stuff? There are video players, mp3 players, even older console system emulators (nes, snes, genesis, etc.). A site I used to visit that may get you started is
www.dcemulation.com.