Well, sorry I have been away for a bit but I did finish this project. Here is what I did:
I bought the Bitscope kit from www.bitscope.com and soldered it together. Not a bad kit at all, but the building is not for an inexperienced electronics hobbyist. Otherwise it went smoothly and it seems to work well.
I did a base install of Win2K pro on this thing which went relatively well, I added an MP3 player and network connection for use in my lab. The Bitscope has a nice piece of free software to use with it that does both the o-scope functions and can use the 8bit data analyzer which you can build separately.
I have several pics of the build and of my finished working and mounted project I will put on my website whenever the heck I can get the darn thing finished, but I can zip up and email them to any who request.
I bought the serial I/O board from badflash (badflash is awesome with getting orders and parts out quickly) and the BIOS (since I didn't care to sit and fiddle with hacking it) and did a standard conversion described in other parts of this forum.
I simply hooked up the bitscope via serial cable to the hacked I/O (I also put a second serial DB9 connecter in the front of the casing for easy connecting to PIC and Basic Stamp programming cables) and viola! i have a working o-scope. The refresh and shadowing have not been a problem for me, and I can measure signals to 100MHz on each channel and can read it pretty clearly. The only complaint I have is that I cannot display both signals at the same time real-time on the display. Other than that I can capture, resize, etc etc. This has turned into the perfect workbench machine, especially since I can play MP3s out of it from the network drive while working at the bench. I was able to mount the I/O up on my pegboard above the workbench to get it up and out of the way. I am planning to order the data analyzer kit from bitscope to be able to analyze multiple digital signals.
Email me for pics and I will send them out happily. If anyone gets the Xoscope deal working with the potentiameter and resistor circuit(linked off the xoscope site) through that Yamaha sound chip I would love to hear about it.
I can also help if anyone else is trying to do this and hits a snag...