@tpr It looks better but still not full res. I have no experience with mame2016 but afaik bezels in current mame should be high res (latest mame won't run on Pi).
As you are using lr-mame2003plus would you try my overlay for GORF that uses both LR overlay + mame backdrop (for the lamps animations):
It is high res.
Please do not post a support request without first reading and following the advice in https://retropie.org.uk/forum/topic/3/read-this-first