i thought the n64 output 44.1khz audio, does that mean the 48khz output would be resampled? is there a setting to change this?
I believe the N64 uses multiple sample rates (different per game) and they also seem too far off from a standard rate, so some TVs would have trouble with it.
How is the compatibility with the direct mode? Does it output as a standard format? I believe the N64 uses an odd pixel clock and also an odd amount of pixels per line that does not really comply with any standard. Did you find a way around this or do you just need to be lucky that your TV accepts it? When I see the statement about lag, it does not seem you are linedoubling the incoming 240p/480i signal.