I've seen it! Whoa, I'm amazed!
I did not perfectly understood how it works, however. It has 2 options which can be turned on or off: Vertical Size (or scan? can't remember) and Progressive Scan. The first one basicly doubles the vertical resolution for low-res games.
But there are some oddities. GT4 Prologue for example uses progressive scan and is low res, so we activated both options and you get a 320x240 game with crisp pixels and colors.
Then we tried a samurai game (maybe it's called Tenchu or something), which does NOT use progressive scan. But the colors were crisp and nice, and while the screen refresh were more noticeable compared to the progressive scan games, the interlacing caused a sort of "half pixel anti alias" which allowed for a "fake" higher resoution. In other words, it looked better than the progressive GT4 Prologue.
Then my friend popped in the Ghost Hunter disc, which supported both hi-res and progressive, and it was simply beautiful
... almost like the DC VGA! The only issue was a white glow along the bottom side of the monitor, very noticeable with dark images - and that game is often dark.
Unfortunately many games simply won't work.
I was wondering how can this thing achieve such great quality with non-progressive enabled games? Is it doing some double scanning taking the RGB signal? The colors was far better than any s-video or component transcoder I've seen so far (but I still didn't see an XRGB-2 at work).