totally get where your coming from on the USB grabber, they are either dirt cheap or expensive and the ones in the middle are questionable to whether they are just a diff case and overpriced :LOL:
I noticed major lag yesterday on mine after setting it up to TV again, only way for me to resolve it was to reduce the video capture down to 1280x720p and its near perfect, 1080 would be better so it matches screen 100% but its only slightly larger but bearable for the cost of a good device.
With you having to overclock the Zero to notice a difference - Surely The Zero is one of the biggest culprits, Single Core CPU, 512mb ram - Is that enough hardware to efficiently handle the video capture plus the operating system and that's the reason you are at 256x144px?
Never had one or tried one but id of thought that it would run a headless or lightweight distro with not much resources left for other things or have i missed out for all these years? :roflmao:
Youd think the card would handle something higher or at very least 640x480 - try as @TPmodding suggested and run