General: Press release PPC Banner advertising Social bookmarking (place links on your site) Arcade specific advertising: http://www.boostmyarcade.com/ http://www.gamertraffic.com/
Myspace (bulletins) That place is overflowing with a perfect target audience. Buy links on any website that bored people would be likely to visit.
I don't think a press release would be effective. I would focus on getting some original games for your arcade instead of advertising it.
First get original games that are hard to find anywhere else. Next, buy some MySpace bulletins with highly targeted traffic.
I was thinking about getting some of my own games, but I don't know anyone who knows Flash...and am not sure what it'd cost. I may try gaming directories.
The perfect way to find people to make flash games is to look at popular arcade websites. I went on CrazyMonkeyGames.com and played Thing Thing 2. I saw the creators and added them to AIM. Soon enough, they're going to make me a game. Good luck man! By the way, check out my thread in the General Marketing forum about this.