[Coldsaturn]

I usually don't find much of a difference, definitely check if your settings are set to ultra, and in general emulators tend to have a worse graphic rendition than when played originally the device. Then of course cutscene quality is cutscene quality, you'll always get a bit less (especially with shadows and hair) in the rest of the game.

I incorrectly wrote "on the left" when those buttons are on the right. I fixed the original post.
Clipping as in the poses that are not originally created to work together will have the characters overlap with each other in parts or with their whole body. Usually this is a problem, but in this case it can be used to create the illusion of a hug, specific gestures etc.

For example:

1) Edit the fingers that are coming out of his chin and it will look like MC shoved her fingers in his mouth
2) The hand clipping into her hair makes it look like he's caressing her
3) Or like he's holding her hand
4) From the front and with sufficient zoom it would look like he's got his hand around her throat
5) Self-explanatory. There's a whole genre on these obviously lol