Okay, I've researched this a bit, but I want to just make sure I have it right...
In order to play SG-1000/Mark III games on a US SMS, you need to either disable the BIOS (instructions on smspower.org) or replace it with a multiBIOS. This will, however, make certain unspecified US SMS games not work with the system. Does anybody know what games?
Then, in order to use SG-1000/Mark III cartridges you have to build an adapter since the pinout is different. However, since there's no FM unit in the US SMS, you won't get the complete soundtrack. Does anybody know if it's 100% compatible with all the original SG-1000 and later Mark III cartridges?
If you want to play SG-1000 or Mark III MyCards, the card slot in the US SMS 1 is compatible without any additional modifications.
Lastly, I assume this only works with a SMS model 1 or 2. Does anybody know if the Power Base Converter can be modified as well? I read that the Japanese PBC can't play SG-1000 games, so I assume any modded US PBC couldn't either.