It's a SUCCESS!
Thanks to DarthNuno and funkycochise, as well as Stedy and Desiv (from English Amiga board,
http://eab.abime.net/showthread.php?p=817474#post817474 and for helping me out!
I ended up using the schematics posted by
funkycochise and
Stedy , and asked the gentleman who was making the cable for me to follow that. It works!
Here are some screen-shots, but it has to be seen up close and personal, the difference between S-Video and RGB->VGA is day and night! The richness of the color, the natural "scanlines", and the overall glossy, shiny, and bright colorful sprites and images is beyond belief!
I am using PowerStrip to create resolution profiles for my 10804S-D1 (running at 320x240) and my modern DELL LCD at higher resolution, and maintain extended dual view setting.
I would really appreciate if you have tips and additional optimization that you can think of! 
Thanks million again!
It's a SUCCESS!