It's been discussed to death here.. but here goes. It all depends on what games you play.
The best resolution I found for me is:
Windows: 640x480 (interlaced)
MAMEWAH: 640x240 (non-interlaced)
The reason it's best is because most of the games I play (like Neo Geo and most horizontal games) are @ 240 lines or less! Vertical games are stretched to 640x480 and games higher than 240 are also stretched.
The problem with monitors (as opposed to computer monitors) is that they do not automatically change their hold settings when the resolution changes.
So you might stabalize at 640x288 lines, but when you start a neo geo game, it'll roll on you!
but 640x480 and 640x240 and ???x240 or less all have the same vertical hold! (640/2 = 240!) So I set once and all works fine.
Good luck!