Aaaaaand I finally figured it out.
It was simply a case of the obvious: Windows was indeed picking a different resolution and Hz when I switched from LCD to the Makvision. Thanks to the
X Arcade's troubleshooting tips, I was able to confirm using Team Viewer that for some reason when I made the switch, the settings would jump to 1024x600 and 85Hz! Of course the Makvision would cry under those settings. So with the magic of remote desktopping, I set those back to 800x600, 32bit, 60Hz, and voilá.

To be fair, what REALLY threw me off was pure
bad luck. At one point I tried using
Multires on the arcade pc, setting it to run on Startup with 800x600,32bit and 60Hz settings. I was still getting OVERSPECIFICATION. When I made the switch back to the LCD screen, the screen was BLUE for some reason..... I paid that no attention because the LCD monitor I was using was a very OLD Dell monitor that already had a bit of flikering. After tinkering some more with drivers and such, I noticed the VGA cable had 2 prongs that were BENT. Of course that would mess up the MultiRes experiment. But i didn't retry that. By this point I had grabbed a new VGA cable, and had moved on to other crazy ideas (was it the phase of the moon? Global warming? El Niño?).
Now back to finish setting up everything else.... LEDBlinky, track ball, etc. I love this hobby.
