I can't say how exactly, because I honestly don't know. All I know for sure, from experience and comparison, is that it does improve.
Splitting the NES composite video signal; one to the monitors composite connection, the other to the converter box connected to the same monitor, you can switch between the RGB and Composite inputs and really notice the difference. The NES and Flashback 2 units are my only systems that do not have RGB standard, or relatively simple RGB mod options, or standard VGA/Component, DVI or HDMI. So it's not even that big of an issue. Who needs an HD-NES that bad?
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