Hi kingkatt,
If the resolution is available, you can force it through the resolution option, like -r 704x480
Anyway, it should look exactly the same with a super resolution as it would with a "native" one.
I haven't tried Dragon's Lair yet, but you can expect interlace artifacts provided in-game interlace video fields won't match the fields of our interlace video output, and there's nothing that can be done about it (easily).