Well once again good things come to cheap bastards that wait. Many of the really high-end scalers are coming way down in price. I found this Atlona AT-HD500 (originally $200-$225) for a mere $22 on eBay with free shipping including the AC adapter and in nearly mint condition.
What's the word?? This thing is FABULOUS!!

VERY PLEASED and would completely recommend to anyone trying to get the best picture from your DC on a modern TV. The adjustments took a little time to figure out, but it remembers them and the results are as clean and clear as one could hope fore. So wish I had an Egato to show you all the output. Maybe sometime later.
Note 1: You need to have a Dremcast VGA Box to use this.
Note 2: Unlike most of these boxes, this is doing some real work and gets HOT. Don't cover it or leave it in an enclosed space.
************UPDATE************
OK so turns out if you leave the power off for too long (remove the AC adapter), that it will loose the settings you put in, BUT on the plus side it cools-down a lot when not in use, so you can probably leave it plugged-in all the time. Would not be a bad idea to jot your custom settings onto a scrap of paper though in case the power goes out. In my case it needed to have the red and green turned down, and brightness turned up.