@dankcushions Thank you so much for the support. I thought it must be a video problem but if it is emulating like this (the way it is supposed to be) then it is no problem. I am pretty sure Mario Kart 64 was intended for CRTs as well so that is why there are those lines. I also run PSX and N64 at a low res so that they perform well. I will probably dump some PSX Bios and configure some settings so that I get access to all the benefits of the system.
Once again thank you to everyone's support.