So i'm using a CVS287 to convert scart RGB to video component YPbPr. When i plug my megadrive directly to the conversor and to a lcd tv, it does not work. Sometimes the tv shows the sega logo and goes blank. Sometimes it does not work at all. It strangely works on a crt tv with component in (beautiful image!). When I use the megadrive + 32x combo, connected to the conversor and the 32x, it works. Image is rock solid. Even better than sega saturn. So, is the 32x video encoder better than the megadrive one? This also shows that the 32x don't do a simple pass thru when using the megadrive.
It may have something to do with the signal being slightly different when output by the 32X, perhaps closer to the specifications your digital TV expects where as the MD by itself varies too much to keep it happy. I don't think it has anything to do with a better video encoder but something just to do with the signal and timing which gets modified when output by the 32X. It's perhaps possible that other models of the MD might fall closer to the spec your TV likes. CRTs are much more forgiving of off spec signals.
Sounds like your television doesn't support the resolution the Mega Drive is giving out. As has been said time and time before, LCD televisions can be utter crap for accepting a decent signal from old games consoles.
Retro, this don't seem to be a resolution problem. The same game, when output from a 32x, works. It's the same resolution. Seems more like a frequency or sync problem. I prefer to plug the scart-to-rgb into my av-receiver. It converts the component video to hdmi and apply some filtering (some kind of 2x scaler). The receiver even accepts the signal from the megadrive alone (without the 32x), but it lost sync in some situations, like in some games with heavy slowdowns. This does not occur when using the 32x. I still do think the image on the 32x looks better. The one output by the megadrive alone, have a little of waviness.
Using a megadrive 1 (jap), no video signal at all! Using a megadrive 3 (brazilian. I think it's a genesis 2), works, with a lot of sync problems. They both works perfectly when conected to the 32x.