On the VGA front, I've hooked up my A1200 to my 19" AG Neovo TFT using a variety of modes ranging from 24-31KHz with no problems at all.
Regarding small TFT's with composite input, I've tried my Goodmans portable DVD player. With a screen size of 5.6" the image is understandably small. Couple this with the typical composite image quality (slightly blurry and saturated), the viewing experience is a little uncomfortable for prolonged use. I'd definitely recommend using a bigger TFT if funds/space allow and portability isn't an issue.