I know that there has to be some kind of process to turn an analog signal into a digital one. I was wondering if an ossc is also that laggy? And what about this flickering border. I have no idea why this is. I hope it isn't produced by my monitor or my graphics card.

There is always lag, even with CRTs. This is because SVGA supports many different resolutions and signal frequencies.
So whenever a mode is switched, the multisync circuit has to re-sync to the signal, and figure out what data rate and resolution is selected. It can't show a picture until it's 'locked in'.
Some devices are better at this than others, but they all have significant lag between mode switches. That's just how the system works.

Ah ok... As I expected. Well, I think I will stay with my vga to dvi adapter and do the auto adjust thing every time it's needed.

Are you just talking about the time it takes to lock when the resolution changes? Or is there actually noticeable lag.. like, when you move your mouse around or type?

The sync time does vary a lot between devices. I've had monitors that differed substantially how long it took to sync between its own VGA and DVI inputs. My TV is a little slow, so I might miss the POST screen on a fast-booting PC. But the ones that do RAM counts or floppy seeks always show up.

I will try my OSSC on a couple monitors tonight, if I have time. It seems to be pretty quick but I haven't ever paid much attention. This is something the retro console people care about, as some games would switch between 240p and 480i, for example when going into menus on Chrono Cross. On a CRT, there's no perceptible change. On a lot of digital TVs and scalers, it takes several seconds to transition. IIRC, the OSSC is relatively quick -- but it will also depend on how long your monitor takes to change modes.

The OSSC is VERY low-latency once locked, though -- which is part of what the device was built for. The HDMI output only lags a few scanlines behind the analog input. There's no full-frame buffer, just enough to do line doubling / tripling. Still too slow for Duck Hunt (plus no electron beam), but if your monitor were to render straight to the panel with zero overhead, then it would feel exactly like a CRT.

I was talking about the latency when switching between different resolutions. Once it was locked in, there were no noticable lag. Also I have to wait several seconds when I turn on my machine.

I see what you are trying to do. Shame you cannot just use a AGP or PCI card with DVI on it, or you could just have a monitor with VGA. As other have said what you are trying to do is possible, but as they explained you are basically converting a analog signal to a digital signal that means you are encoding a analog signal to digital on the fly you cannot do this without delay or lag. Even if you paid 1000 dollars and found somthing that was the lowest delay device possible there still would be delay. even if there is not notible lag to you persoannly there is technically going to be lag even if you cant perceive it, another person might and it could be measured.

@warlord. You misunderstood my intention. I am happy with my monitor and how it shows analog signals, even when there are sometimes momentarily blurs or shifts... I managed it to get a clear one almost every time. And (dos) games look really nice on that ips panel.

Using a Converter is an experiment and I ended up for now staying with my vga to dvi adapter - it is fine that way. Also I mentioned that I already have a dvi port on my graphics card - it is a GeForce 4 ti 4200. But as I said the dvi quality is only sufficient in the highest possible resolution.