color matching and blur/bleeding colors are 2 different things. No matter what sd/ff you have, it will still kick the a$$ of a vhs input. SVHS and S-Video INPUTS mean the same thing here (Greece) if it means something else there , I don't know...
VHS and S-VHS is two different video systems; in other words, two different formats to record and play analogue video. S-Video is short for Separate Video and is a video signal. Its quite a difference, really, and that is valid for every country. But, yes, S-VHS and S-Video is VERY OFTEN confused to be the same thing. So, in short: S-Video, Composite Video, RGB and such... are all analogue video signals... which VHS and S-VHS isn't. So, in all honesty, I don't have a clue as of what you mean with VHS input, sorry.
And, no, a ScanDoubler doesn't necessarily have to produce high quality video output... but, yes, in most cases there will be insanely much better quality of the picture when using a ScanDoubler/Monitor solution than when using a, for example, composite video together with a TV (obviously).
Also does the rgb output of the a1200 provide the luminance and chrominance signals to create the S-Video signal?
No, it doesn't... but you could still use a RGB -> S-Video converter and get much better quality of the picture than when using composite video (or worse, a RF-connector) as long as the TV-cards drivers support input from the S-Video connector.