That TV is perfect for a perfect native resolution classic arcade picture *if connected properly*. S-video will be crap, you probably can't anything but 480i out of that port. For everything you need to know about connecting it properly and configuring MAME correctly for it, start reading here:
http://forum.arcadecontrols.com/index.php/topic,121491.0.htmlAs far as the TV turning on when power is supplied, you'll have to work on that. You should be able to find the service menu for that model on google. I've been into that service menu but I haven't tried getting it to do what you're asking.
What I'm planning to do is keep the TV plugged in and wire the power button to a computer controlled relay. This would actually be better, as you can program the computer to turn the TV on AFTER the front end is loaded. That way, you don't have to look at a bunch of BIOS and Windows screens.
Also, the TV will normally start up in whatever input was last used; at least when it remains plugged in, not sure how it will behave after having power cut for a period of time.