Has anyone ever measured what the frame delay is wih a XRGB2/2+ scaler? I would think that upscaling to VGA introduces lag. Also, there will be additional lag if you feed the VGA signal to your HDTV because it needs to map the signal to the resolution of the LCD panel. My point is that although the picture quality may be fine, the frame delay will ruin gameplay for many games.
480p is the lowest HD compatible format. Upscaling from 480p to your LCD's native resolution takes less than 1 frame / 60. Unlike 240p/480i, it's a format the TV can work with. True line doubling as the X-RGB 2 is supposed to be capable of should require even less than that (simply displaying two lines instead of one). The delay will be drastically reduced in comparison to what your TV's deinterlacer produces, which was meant to rework analog TV at 480i, where lag isn't of any significance whatsoever. For Dreamcast I highly recommend a VGA adapter. Usually goes for ~ $15-$20 at ebay: http://shop.ebay.com/?_nkw=dreamcast+vga
I've run N64 thru my 50" plasma's composite input and it looked decent. As good as it will probably ever look IMO. I've also run it through an ATI Theater 650 Pro PCIe card via SVideo for kicks and it is about the same. I'm thinking an RGB mod to the console itself is by far the best way to go. Any external converter has to work with that interlaced downsampled PAL/NTSC crap output and that's just never going to look good. Hell I think Wii's component 480p looks awful so I'm not all that thrilled about putting money into a magic box to "transform" SVid/Composite. Dreamcast on VGA looks as good as Wii and Xbox on component.
