RickR

See attached pictures

I wonder if the dark circles at the top edge of the handhelds would have been IR emitters for 2-player action

Yeah I think they were working on a Missile Command one that would have looked like one of these:
 

 
Tod Frye discussed these handhelds in the article uncle Arenafoot linked to the other day: http://forums.atari.io/index.php/topic/915-what-are-the-real-facts-behind-pac-man’s-2600-development/

I love this.  Especially the hand written page.  Thanks for posting it!

Here's what I got in trade from Rowsdower70.  It's a long story.
 
My PS2 died.  So I contacted Rowsdower, who nicely arranged this trade.  And then while the fat PS2 was on the way to me, I found the slim at a thrift store for $15!  So now I have two.  Father and son. 
 
Rowsdower is a lifesaver, and he brings good luck!  And Magic cards. 

Here's what I got in trade from Rowsdower70.  It's a long story.
 
My PS2 died.  So I contacted Rowsdower, who nicely arranged this trade.  And then while the fat PS2 was on the way to me, I found the slim at a thrift store for $15!  So now I have two.  Father and son. 
 
Rowsdower is a lifesaver, and he brings good luck!  And Magic cards. 

I love this.  Especially the hand written page.  Thanks for posting it!

Great question Lee and great insightful answer Yo-Yo.
 
I've always been disappointed that Atari never released the Cosmos.

LOOK what I found!  I got this in a bundle of broken handheld games.  It just needed some serious cleaning, and a new battery connector soldered in.  Now it works perfectly and looks great. 
 
What an uncomfortable name they chose though.  "Touch Me".  Things were quite a bit different in the 70's I guess.  I suppose you'd put on your polyester leisure suit, head on down to the Regal Beagle, and ask attractive people if they'd like to play "Touch Me".  Then whip this thing out of your breast pocket, and everyone gets a good laugh.  Yes, that's exactly how it was in the 70's I'm sure. 
 




 

Here's a short blog post concerning Jim Henson's interaction with Atari. I wish there was more info, but I found it interesting nonetheless.
 
http://www.henson.com/jimsredbook/2013/05/55-61983/
 
There's at least one factual error. It's stated that neither Pigs in Space or Miss Piggy's Wedding's were produced, but of course the former was.

Awesome I love hearing stories like that, good on you  Rowsdower70 
 
I also have that combo, a slim and a original "phat" PS2, I am incredibly impressed with the slim but there is just something about the original even if it is just nostalgia, though not my original I associate my mother (who passed a few years ago too young) back when the original came out, I was living on my own and I had a birthday coming up, I knew it was a bit much to ask but I really sold her on the idea of how it would be so great because it was the awesome new game console from SONY and it could even double as a DVD player! Well, she swung it and got it for my birthday and I had so many amazing gaming experiences on it but the circumstances on how I got it mean much more to me these days. 

Here's what I got in trade from Rowsdower70.  It's a long story.
 
My PS2 died.  So I contacted Rowsdower, who nicely arranged this trade.  And then while the fat PS2 was on the way to me, I found the slim at a thrift store for $15!  So now I have two.  Father and son. 
 
Rowsdower is a lifesaver, and he brings good luck!  And Magic cards. 

MAXIMUM!!!!

I found this:
http://www.theisozone.com/tutorials/dreamcast/burning-and-backup/burning-cdis-on-a-mac-w-liquid-cd/
 
Of course, the link to download that program tried to get me to download some nefarious programs, so I went to the source directly.
 
I downloaded the newest version, followed the instructions & this is the result:
 

 
THANK YOU AGAIN!!!

Now to download every emulator I can find. I need to be able to play everything that will be in the High Score Club! 

One piece of advice I can offer is to try at first using CD-RW disks if you have them.  This will allow you to burn, and then try again if you screw something up. 

I think it's for PS2.

Great question Lee and great insightful answer Yo-Yo.
 
I've always been disappointed that Atari never released the Cosmos.

Indeed I agree, Yo-Yo. It did hurt them.
Atari had great properties that would have made a killing in the handheld market: Space Invaders, Asteroids, Missile Command, Pac-Man, even Breakout. They missed a golden opportunity. I think Missile Command in particular could have been realized as a handheld extremely well.

If you look at the content of the disc you created on your computer what do you see? Is it simply a copy of the file you unzipped or does it appear to be several files (this would be the difference of simply burning the file to a disc and restoring the image back to disc form to be something bootable on your Dreamcast) 
 
In the meantime can you give ME a link to the exact file on ISO Zone that you downloaded? I will burn it myself and let you know exactly how the structure of the properly burned disc should appear. 
 
As Rickr suggests using Re-Writable media is good practice for burning images so not to waste discs but remember once you are confident you got the burning down you must use only CD-r (non re-writable) format only for actually booting / playing on your Dreamcast. 
 
AS FOR A IMGBURN alternative for MAC, a quick look shows this, free and looks like as simply an interface. I KNOW NOTHING OF THE MAC WORLD lol, obviously I can give no guarantee but the description and the look of it seems promising. Otherwise googling ImgBurn alternatives for MAC gives many results you could sift through, just make sure they say FREE and appear smile for the task of burning images (you don't need some over complicated Burning suite) 
 
http://macdownload.informer.com/simplyburns/

It hurt them more than we talk about too. They ceded that whole market to Mattel and Coleco. Atari paid millions for the rights to games like Pac-Man and allowed the handheld/tabletop rights to go to Coleco. When it came time to negotiate Donkey Kong, Nintendo decided to go with Coleco instead because they had the ability to put Donkey Kong on a handheld and manufacture Donkey Kong toys. Nintendo has always been a toy company at heart and correctly saw that Atari wasn't, but should have been.

I wonder why Atari never capitalized on the handheld market. They certainly had the technical know-how to have at least attempted, but after Touch Me, they never made another beyond prototypes.

Another great trade from RickR!
 

Just look at that killer gun controller!

One piece of advice I can offer is to try at first using CD-RW disks if you have them.  This will allow you to burn, and then try again if you screw something up. 

My collection? Umm...

ATARI:
2600(Light Sixer) (Doesn't work)
2600(Four Switch) (Doesn't work)
2600 Jr.

MATTEL:
Intellivision

MICROSOFT:
XBox

NINTENDO:
NES
Wii
Game Boy Advance SP
new 3DS XL: Hyrule Edition

SEGA:
Genesis
Dreamcast

SONY:
PlayStation
PSOne
Playstation 2
PSP

Uh, that's all my consoles. My largest software collection is Atari 2600.

Yay! I'm glad you got it.
 
I'm REALLY sorry I don't have any controllers to go with it. 
 
I'm glad someone can get some use out of it. Enjoy!

This came in the mail today, a gift from StormSurge.
 
Thanks, man!
 
Now I just need a controller, and soon I'll be saving the Princess from another castle!