I bought that exact video converter for use with a VGA monitor and VGA projector, though I don't think I ever used my 8-bit with it. It was for other composite video sources.
it worked pretty good, though it still wasn't as sharp on either my CRT VGA monitor or my LCD projector as direct video/S-video was on the LCD projector.
Also, it lasted for just under a year and died.
I use it as a paper weight now.
Yea, I can see a very negative downside to this. Cheap quality. My screen shot is off of a NEC 20" LCD that is 8-9 years old, state of the art when I got it.
You may get a longer life span out of it than me though, depending on how often it is used. I used mine on a nearly daily basis for several hours. I did notice on occasion that the case was quite warm when in use. Maybe less use and good airflow will make it last longer. Maybe even remove it from the solidly enclosed case with poor venting.
When and if it goes bad, check the power supply caps first. I just fixed a 20" Samsung monitor for $2 replacing 2 bad electrolytic capacitors, works like new again (that's the monitor seen on the photo a few messages back)
Mine going bad has nothing to do with the caps, the chip(s) actually malfunctioned/burned out. I can plug it in and it turns on and displays garbage graphics onscreen.