Well, it seems that it is not a sync problem, as I took each of the H/V sync (that are coupled into composite sync for use with SCART) and put a 100 ohm pot in between. Turning the pot would eventually cause the image to lose sync completely, but the black 'lines' were not affected at all.
The lines are actually empty space because the top 4-6 lines seem to 'diverge'. I still have no clue what this might mean!
I tried hooking the TV up to my cheap---I'm attempting to get by the auto-censor and should be beaten after I re-read the rules-- DVD player, and the image showed quite nicely, with no weird lines or anything. What is the resolution going out from a DVD player?
I guess it is just a hardware problem with my TV... I will find a more dedicated TV repair forum for help with this.
Anyway, I played around with Minwah's excellent Resolution Tool, and it seems that my TV can display all the ArcadeVGA resolutions with 288 lines (352x288, 384x288, 512x288 and 640x288) pretty well! Half the top line is missing and perhaps the bottom line as well, but nothing too obtrusive.
But somehow these resolutions seem to strain the eyes more than the others..?. When I pick a game and set the resolution first to something really close to the original resolution and then afterwards to the closest x288 resolution, I swear that the x288 has more of that 'too low refresh rate' feel from that can be seen with PC monitors. Not quite as bad as a PC monitor set at 60Hz, but close. Can any of you gurus explain this?
I can't really tell the difference between the picture quality between each resolution, just a slight flickering sensation from the x288's.
Anyway, I guess once I put some glass in front of the screen and get some more viewing distance, things might be quite OK.... But I am afraid I can more or less forget about running Daphne and Vpinball with only x288 resolutions, or...?
Thanks...