Generic PnP monitor, just means the video card couldn't infer a proper model based on the EDID that it received from the monitor. It is to be expected, since the arcade monitors typically don't send (or have and pins, for that matter) any EDID signals. Arcade monitors accept RGB and syncs, but don't typically send any EDID signals, nor do most have EDID pins. The only exception being POSSIBLY some never tri-sync monitors, but I can't confirm the existence of any. Not that it matters, there's no side effects of incorrectly ID'ed monitors.
Also, that little bit that scrolls funky is the windows 7 loading animation. It's sent at, i believe, an 800x600 resolution, versus the previous XP 640x480 load screen. It's not something that has any proven long-term side effects, unless someone can show otherwise.
My machines boot without any ArcadeVGA cards, or any other signal modifier cards (jpac). So pretty much i get that funky scrolling all through my bootup until Soft15KHz loads.
If you'd like, google for "Windows 7 noguiboot", it'll replace the windows 7 load screen with a solid black screen. You won't get that funky scrolling effect, instead just a solid black screen for 10 seconds.
To enable noguiboot in windows 7, click start, and type "msconfig" in the start menu bar and hit enter. In the new window, click Boot, and check "No GUI Boot".