VGA on LCD TV

I just realized I can use my DC VGA adapter to hook up my DC to my new LCD HDTV (Samsung LNT4665F). I tried a couple of games and they look rather fugly (I know about blowing up SD video on HDTVs).

Question is, should I stick with S-video so the flaws won't be so apparent, or should I tweak around the settings on the TV with VGA? I've run the TV settings through the THX Optimizer and turned the sharpness all the way down.

Anyone have a similar setup? How good is VGA compared to S-video on a big screen TV?

I'm using my CRT monitor so I can't really help with LCD.

Btw, the problem is not the SD/deinterlacer thing (480i) but the native resolution of your 1080p LCD. Everything that's not 1080p won't look too good and the Dreamcast's VGA output is 480p (EDTV).