Confused now :S.
The quality improved a lot when I used the mame.ini file from the youtube video above. However, I couldn't see any scanline (even though I can see the 'scanline_alpha' field you mention in the ini/mame.ini file, but then when I click TAB and select 'Slider control' the scanline option is not appearing there, I've just got a mini subset of options it seems...
That's the only mame.ini I can see in my ini folder. No further .ini under presets or anything related to the game, but still... the options I can see under 'Slider control' are:
https://image.ibb.co/eXgrkw/slider_control_options.jpgTo confuse the thing further, I deleted the complete ini folder to start from scratch, and this time MAME didn't load the large pixels I found originally, it just loaded the good quality image (without the scanlines), same as when I copied those changes a while ago.
Any idea what could be happening with the mame.ini file in this case? Where the current settings are being read from or why I cannot see the scanline settings?