Hey flooby.
I am certainly not an authority in this area by any means. As far as the TG16 is concerned, I have owned one for less than a week at this point. That said, I'll get the ball rolling in this thread before some of the other guys come to your rescue.
Which RGB to S-Video converter are you using? You said "commercial pre-made" - is it internal or external? If is is external and you are pulling the RGB information directly from the video chip, you would certainly need to amp your RGB signals as they are not up to spec. I saw that you posted in the "complete DUO S-Video mod" thread and mentioned acquiring CXA1645 chips. Did you see the link that nat provided to
this page? It mentions building the amp for each signal. With that up to spec, your converter would probably convert it naturally.
As for your brightness issue - I do not think sync would cause you to have a darker picture. I would think if the sync signal wasn't good enough it would either look "weird" or the picture would roll. Someone else can clear that part up for you.
Here's a link to another gamesx page -
Adding RGB.
Hope some of that helps. I am sure some of the other guys here will jump in and help.