Most cab users of the fe use it with a tv or arcade monitor. I never heard complaints of the picture quality on tv's. The fe can resize itself to the desktop resolution automatically.
It also works ok with ultimarcs arcadevga card but you'll need the new low-poly models for bigger fps arcades because it uses an older ati chipset for 3d. (Baraka, one of the main model contributers, uses one...big incentive for him to come up with faster rendering models ;-) )
I personally tried it with s-vhs and using rgb-scart and both looked ok. Although the rgb-scart looked a bit better because no color ghosting at all.
peter
It looks great on a monitor and I think it'll do fine on my TV now that I've played with it a bit.
My only concern is that the game description in the fpsarcade (year, company, and all that) may be a bit small to be easily viewable on my TV. Is there a particular setting to increase the font size for those? I'll look around tonight.
I've now seen first hand what it can do to a crappy 3d chipset.

My testbed that I'm using right now has an old P4 SiS integrated graphics chipset sharing 32mb of RAM and 3darcade eats it alive!! Only gets worse with Scarpino's arcade over the default one. That's ok though, I look forward to the arrival of my midlevel 9200SE w/128MB dedicated. We'll see who eats who then!

Your program looks fantastic, it's exactly what I was looking for in a FE and I didn't even know it!