How far into MM8 does the Arcomage game appear? I wanted to experience this card game but I havent been able to get very far in MM8 at all.

Basically after you get to the mainland from the Dagger Wound Isles :)

Gotcha. So thats probobly right after where I got stuck. I made it as far as this pyrimid tomb area on the islands and I got killed in there over and over again. Think I'll give it another go.

It's been a very long time since I played, but I'm pretty sure that each town has its own arcomage game and the difficulty (and maybe available cards?) changes based on where you're at. I remember making a save at each city just so I could play the different ones when I wanted.

I'm pretty sure you can play Acromage in any of the taverns from the get-go in M&M VIII.

Does that include the town at the start which is full of lizard men being attacked by pirates?

yep, its an option at every Inn/Tavern from the beginning