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Text will be very fuzzy in virtually all resolutions except 480p and 540p. A lot also depends on the quality of the cables and the transcoder you use.
With that said, a Dreamcast using a VGA cable and a VGA-to-Component Video transcoder looks very nice on my Toshiba TW40X81 (40" widescreen RPTV). However, for some reason, it doesn't look as good using my HTPC. On the other hand, using an NEC LT240 DLP projector with the transcoder and my HTPC looks very nice (yes I know the LT240 has VGA, but I wanted to see how it would look with component video on a PC).
In all cases, text varied from very fuzzy to somewhat acceptable, unless I stick with 848 or less horizontal resolution, or if I don't match the resolution to the TV's native resolution.
YMMV.
Mahatma Gandhi, as you know, walked barefoot most of the time, which produced an impressive set of calluses on his feet. He also ate very little, which made him rather frail and with his odd diet, he suffered from bad breath. This made him...a super-callused fragile mystic hexed by halitosis.
Gameshow host: "Is taking Viagra kosher during Passover dinner?"
Whoopee Goldberg: "Not if it leads to pork."
Kermit the Frog: "Hey, that's my line!"
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