Sorry for the late reply. But I went ahead and resinstall my OS (WINDOWS 7 X64) along with CRT_EMUDRIVER and still ended up with the same result of distortion of the top portion of the screen as seen in the image. This time around, I did not even bother mucking with VMMAKER post install. I just changed the resolution via windows to 640x480 @30 as per the crt_EMUDRIVER instruction.
Prior to reinstallation, I was playing with the resolutions in ArcadeOSD and some of the lower resolutions (the ones in the 200s x 200x) did not have the screen distortion issue. Could it still be the CVS287? Maybe my TV (KV-27FS120) doesn't play well with CRT_EMUDRIVER? But it seems this particular model is a favorite amongst the community. I'm at a total lost as I sit here with a fresh reinstall of the OS.....
Any help would be greatly appreciated. Much thanks guys/gals!