* Converter changes a VGA (640x480) signal to a component (480p) signal, letting you connect your computer to a television
* Depending on display/monitor, converter can convert an XGA signal (1024x768) to 720p
So basically, your only options would be to set your monitor to either 640x480 and have 480p out, or set it to 1024x768 and have 720p output.
If you're thinking about using one of these between an arcade PCB and a TV monitor, i think you might need to keep looking. Not 100% sure if it will work that way or not, but it looks like it's a transcoder more than an upscaler. Interesting though, because XGA is a 4:3 picture, and 720p is a 16:9 picture(1280x720).
XGA at 1024x768 is "close enough" to 720p that it usually works, which is probably why they recommend it, some TVs may be a little unhappy or not display a chunk of the image. 640x480 VGA *is* 480p in terms of timings, so that's easy enough.
Depending on how they do it, it may work down at 480i, too. Just output 640x480 interlaced, and you get 480i. The timings are identical. Only reason this won't work is if the conversion is done digitally, and the PLL can't lock at that low pixel clock, which is possible. However, if it's analog, it won't know or care. 240p (320x240 progressive) may also work, but that'll be even more subject to pixel clock limitations on the low end for digital conversion. Maybe try 640x240 and software scale everything 2x horizontally (this results in an effectively identical analog signal).
For grins, you can probably also get 1080i (1920x1080 interlace), 720i (1280x720 interlace), and maybe even 1080p (1920x1080 progressive) if the converter can keep up with that kind of bandwidth (things may start getting a little blurry). SXGA (1280x1024) will also probably work if 1080p does, but some TVs may be unhappy. Maybe try SXGA+ (1440x1050) or WSXGA+ (1680x1050) if that's all you can convince your PC to output.
As for aspect ratio, it'll just be stretched, and your pixels won't be square, and unfortunatley Windows assumes your pixels are square. You can alter your horizontal pixel count in order to make the pixels square again if you like, but the converter and your television don't really care. DVDs are encoded at 720x480 which is neither 4:3 nor 16:9. The monitor just stretches/crushes it to fit. Remember that analog video signals don't have a well defined horizontal pixel count.
Umm maybe this thread could be misleading you a bit.
If you're just going S-video out to a tv, you don't need any soft-15khz or arcadevga, just any video card that can output through s-video.
This is correct. You can just use the onboard S-Video output from your PC card. The results are usually subpar, and you can't usually have native timings due to how those outputs work, but it may be acceptable for many. With some work and some external hardware, it's possible to basically treat a TV like an arcade monitor with similar results. Biggest issue is usually lack of geometry controls.
For a while, some PC cards had "HDTV output" which was rumored to support proper 480i. I never got hold of one try to it out, and there may be some driver limitations. I'd love to know if this is true. I don't use MAME, but there are other instances where I want to have native control over TV compatible video output.