Direct contact with phpas admin through
http://www.phparcadescript.com/support/ is normally quick.
Yeah, it comes with 5 game packs, so 2,700 or more games:
Game Pack 1 and 2 - 1GB in size each
Classic Game Pack - 84MB
Adult Games - 174MB
Girl Game Pack - 136MB
Make sure you have the bandwidth to get the ones you want or all of them. Once paid you have like 5 days to grab them and a limited number of download attempts. They don't resume either, download each one separate at least though. Don't stress too much about this, I think you can request them again if you missed out, but it's something to be aware of. Have a backup copy on your computer at all times.
I would suggest just picking from them and/or using the gamefeeds from Mochimedia.com instead (find the mod for free on this forum). You have an endless supply of games there, just pick the ones you and your members would like and build up slowly, rather than dumping a huge collection on them. Quality over quantity and this way the search engine crawlers can keep up to index your pages.
If you want target on one topic like Girl Games and create a niche site, they tend to do better sometimes.
It's $45US isn't it? If you install it yourself. Check out
www.8hourarcade.com for tutorial and help on installing. So long you understand basic HTML and PHP it's not too hard to setup.
As for the host, godaddy should be fine, hostgator might be a cheaper option. Name.com would also be cheaper to get the domain name through. Make sure you pick a good domain name, makes a huge differences in traffic. Something short, easy to remember and maybe a keyword or two.