Not quite what I'm gonna do, but along those lines. The thing I plan on making is going to be large, like a stand-up arcade machine. I'll probably paint the outside of it to have an old carnival arcade feel to it and adorn the inside with wisps of fabric here and there to give it a "gypsy" feel.Zombie F... check out the Gemmy website because the idea you are talking about is already made. Here's the link:
http://www.gemmy.com/product.cfm?productId=28170&subCatId=68&parent=41
Hope this helps.