A few comments, not competing for a complete answer to the posters question.
The beagleboard is cool, $150 but it takes another $150 in usb stuff to make it useful. The embest beagleboard is cheaper overall due to the lack of stuff you have to buy to go with it. But now there is the hawkboard, also an omap based board, costs under $100 and so far seems very well done. I am liking it more than the beagleboard at the moment, far less painful.
The open-rd board offers far more than the beagleboard for that price range, something to look into if/when you have a toy budget. both the open board and the enclosed for another $100 have a full sata connector so you can put a laptop drive on it and not have to use painfully slow flash devices or usb.
The poster doesnt have the resources to buy these toys. I would argue that if you continue to pursue this and get good at embedded ARM you will have the will and find the way. Which is why I mention Sparkfun and others have $30-$50 boards that work out of the box. Post a question to stackoverflow before you buy though asking which is better. I have many and there are a number of them I found unusable or too painful to bother with, I wouldnt want you to spend all your toy budget on something that is not worth having.
I have some qemu arm integrator example code laying around here, let me package it up and provide a working example. I have lots of other arm and gba code laying around, maybe I will post that as well.
The ARM architecture started out and last time I worked with their people/tools using an emulator called the armulator (google/wikipedia it). So emulating arm in particular is not uncommon.
Writing your own emulator would/could be a fun project or taking an existing one and adding your own peripherals. qemu and mame are too bulky to play with as-is, you might be able to extract the arm from mame without too much trouble.
EDIT:
A simple arm example for running on qemu:
http://www.dwelch.com/integrator.tar.gz
EDIT2
This is fun, I found that the armulator is out in the public, gdb has a copy skeye and others too, grabbed it, gnawed it down to just an armv4t and wrote a quick arm and thumb test program. Been wanting a standalone arm/thumbulator anyway.
http://www.dwelch.com/armulator-20100421a.tar.gz