- approximately 100ms lag when scaling 480i material to any default resolution (1024x768, 1280x1024, and 1600x1200).
- approximately 20ms lag when scaling 480p material to any default resolution (1024x768, 1280x1024, and 1600x1200)
- In Line Doubler and Transcoder mode, DVI output is non-functional, only VGA out is supported currently.
- Line Doubler and Transcoder mode (which outputs 480p) can display both 480i and 480p with no lag. However, in this mode, the GAME IN port (21 pin RGB) cannot completely sync properly. Most of the screen is OK, but the top 10% or so is out of sync (very distorted). Adjusting the AFC level in normal operation mode from "2" to "5" fixes this, but in Line Doubler/Transcoder mode, the screen just goes haywire when the AFC level is changed from the default position. So, right now with the RGB port, you're either forced to play with 100ms lag or play with the top 10% of the screen extremely distorted.
- Analog sound that goes through the GAME IN port (21 pin RGB) is scratchy and distorted both in regular operation mode and in Line Doubler/Transcoder mode. Analog sound through all other input ports functions perfectly.
Right now, I can only recommend the XRGB-3 to people who want a slightly upgraded XRGB-2+. If you plan on using the 21 Pin RGB port, you should not get one. If you wanted it for the DVI output, you should not get one, since you can't actually use it. If you wanted one for the higher output resolutions, you should not get one because they lag very badly (probably even worse than your TV does while directly connected to your game console!).
If you want 480p support on your inputs, and 640x480 (480p) with VGA output is enough, and you won't ever use the 21 Pin RGB port I could recommend this unit. However, there are very few people that are going to fall in this category!

I did submit an error report to Micomsoft in Japanese, so hopefully I can get a reply and shed some light on what they plan to do about the bugs in the current firmware version.