@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): https://retropie.org.uk/forum/topic/20486/backdrops-in-mame2003-plus/330
It is high res.
@roslof
I have the exact same problem but I can't find mame 2016 folder under the bios folder on my image-virtualman 128gb arcade but it must be there as it is an option to use to open the rom file!
Any idea why, or where it could be??