Josh,
ok, it might have been a bit overhasty - my apologies - but only a TINY LITTLE bit I think

Looking at the info window on my 50pro I can see that the complete iscan family can do some kind of alpha-blended graphics overlay without disturbing the processor's work. And I imagine it can't be too difficult to use the same feature for some other overlays features. And - if I remember correctly - the transparecy of the info VP... info window is even user adjustable, so all we need is a overlay pattern and a user-adjustable transparency setting for it and we're done.
Here is a tile which is used for scaline emulation on the PC:

Basically white = 100% transparent, black = 0% transparency and the greys in between. I think the VP... series is easily able to handle something like this and even without user-loadable graphics, a few pre-defined settings would easily be enough to make the VP50 every retro-gamer's dream.
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I just talked to a buddy who does a lot of work in the broadcast industry and he advised to have a look at the Blackmagic Intensity with it's new on-air feature. The card has a 720p60 HDMI input + output plus a live mixer, so you can easily overlay graphics on the fly. I'll contact Blackmagic to find out how long the card delays the signal while processing the overlay, but it's a good idea as the card is quite cheap ($300).
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PS: Josh,
I emailed the ABT support team a few weeks back about the VP50 incompatibility to older videogame systems. Since I got no reply, I emailed you directly recently, but got no reply either. Am I doing anything wrong ? Shall I try emailing again ?