I experimented with S-Video and RBG SCART a lot, and to be perfectly honestly, I didn't like the results. The dithered transparencies look much more defined. Some games use them as shadows (Daytona, VF2), but S-Video/RBG SCART make them look like net curtains.
It's best to stick with a Composite cable IMO. SCART can support Composite. I might experiment with an upscaler though.
Just curious, but why play the Saturn version of Virtual On? The arcade version is vastly superior.
Also, the Action Replay 4 in 1 Cart covers everything (extra RAM, more memory, and can let you play import games). I will order one eventually if my Saturn doesn't die.
I'm also tempted to mod another Saturn to play SF3 Scenarios 2 and 3 in English on the original hardware. You can burn a CD with a hacked ISO. Modding a Saturn is risky though; I wish there was an easier way (emulation is still far from perfect).
I am listening to Three Lions Football's coming Home, and remembering 1996 and 1998.