Hey everyone,
I'm new to the forum but I've been dabbling in MAME and tweaking my cabinet for a little over 3 years now. I'm writing this thread because I think I've finally gotten everything set up to a point where I'm quite pleased with the picture quality using a 27" Orion Television (Flat Toshiba Tube) and S-Video. I spent the last several weeks on a quest to obtain native resolutions on my cabinet, but through much research, I believe (and correct me if I'm wrong) that due to my S-Video setup, I'm limited to displaying a 480i picture on my TV whether I want it or not. Not letting that get the best of me, I managed (through the help of this forum and the MAME newvideo.txt) to get a clear crisp picture which has no screen tearing, and almost....almost....perfect unskipped sound.
After spending hours and hours on this, here are the modified parameters in my MAME.INI file which I finally set on using. I hope it will help people in my similar situation as I've yet to see a single post anywhere online which includes all of these tips combined. 
#
# CORE PERFORMANCE OPTIONS
#
sleep                     0
refreshspeed              60
#
# WINDOWS PERFORMANCE OPTIONS
#
priority                  1
multithreading            1
#
# WINDOWS VIDEO OPTIONS
#
video                     d3d
prescale                  2
effect                    sharp
syncrefresh               1
#
# DIRECTDRAW-SPECIFIC OPTIONS
#
hwstretch                 0
#
# DIRECT3D-SPECIFIC OPTIONS
#
d3dversion                9
filter                    1
#
# PER-WINDOW VIDEO OPTIONS
#
resolution0               640x480@60
#
# FULL SCREEN OPTIONS
#
triplebuffer              1
switchres                 1
Now I realize some of these changes might be direct-draw specific, but I've included them anyway (just in case 

. Purists out there might hate on my 60hz forced refresh speed but I honestly love how it ends up looking; everything is smooth, and there's no video jitter. 
There are two interesting options which to my eyes look like they result in a similar picture, but I've decided to stick with what the MAME developers suggested I use, and those are the filter and prescale options.
Filter=1 and Prescale=1 ends up looking very blurry on my television, with some colours like reds bleeding outside of the pixels a bit, so as suggested I changed Prescale to 2, and this cleaned up the picture considerably. What I'm confused with is, if I keep prescale at 1, and turn off filter, the picture looks the same as with my settings above, so I'm not quite sure what the difference could be. 
Originally I had attempted to make direct draw work with hwstretch off and switchres on but it always ended with either certain games running in a very small window, or overscaled to the point where I was only seeing 1/4 of the screen. I think if I had component inputs this would probably not be an issue, but alas my television despite having a GREAT high contrast tube made in 2003, doesn't include one. 
To further improve the picture quality however, I managed to find the service menu code for my television, and was able to crank up the sharpness beyond what the user menu allowed making resulting in a very striking vibrant picture which I love. Its possibly the best picture I've seen on a tube television ever. If you have a toshiba based tv, try remote-9 and volume-down (on tv) to access this menu.
If you're using svideo to connect your MAME pc to a television, then I highly suggest trying the above options as you may be as impressed as I was afterwards. 
Thank you arcadecontrols.com for having quite a few awesome threads on monitor/video set ups, as it was quite enlightening!
Feel free to suggest anything that might further improve my set up, I'm all ears 
