Yes, all the playchoice10 games do this.
I took your advice and loaded the game, hit tab in groovymame to go to the options, selected video options and chose either video0 or video1, not sure which. Anyways, after doing that the screen went black. Reload the game and it is still the same way. Went into my groovymame folder and deleted the .cfg and nvram files for the game but when I load it up it is still the same. What else would be telling GM to default to whatever setting are causing the all black screen. My mame.xml has nothing in it regarding resolutions and I don't see anything in any of the VMM files.
With regards to the 480i vs 496i, i'm not sure what is going on there, I went into AOSD and 480i is definitely listed as a resolution so not sure why that isn't being selected.