https://forum.videohelp.com > video > capturing has lots of discussions on this that may help (interlaced vs progressive), capture resolution, etc.
This isn't my area of expertise, but I suspect
- Your base resolution should match your content (yes, small screen)
then you need to test
- does enlarging output in OBS (upscaling) vs let video player handle upscaling look better... expect many test iterations
- and beware which re-scaling algorithm your select in OBS. The default tries to balance CPU vs quality. If you have enough CPU power, a higher quality algorithm may suit you better.
Seach this forum on VHS and you'll find plenty of previous discussions on this topic
as for 352xXXX - realize the XXX depends on which format (NTSC, PAL, etc) the video is in and whether Interlaced or Progressive