I think the fact that no one has revived this thread to gush about their favorite game working again is enough evidence to show that this bug has not been fixed... at least, not in a useable build of zsnes. Use 1.42.
Is that performance hit something that is potentially "fixable" at some point in the future? I don't need to use those video modes (my precious....), I'm just curious.
I've actually found that my PS2 adapter from Radio Shack worked really well, no problems whatsoever. It's not the same model AOL was referring to, though... mine's just a simple black cable. Highly reccomended.