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Actually you can use Retroarch with Openelec and play emulated games directly from Openelec and XBMC.

Follow this guide:

I have it installed and it works like a charm. The only issue I found was everytime you start a game, you have to configure your controller. Maybe there’s a way to get around this, but I still haven’t found it.

I also have build my Hyperion ambilight set with a USBTV007 EasyCAP capturing my TV output. I want it to capture also the Retroarch but I don’t know what is the priority given to Retroarch for the v4l driver. Can anyone help me?