For animation, KDVD Full D1 or KDVD Half D1 ?
 

KDVD Full D1 is the better template, but is there much of a different in quality than KDVD Half D1 when the source is japanese animation?

The most important is the script. The template is important only on long movies. How much minutes do you plan to put on a single disc ?

Half-D1 will look slightly softer as the standalone will have to scale from 352 pixels upon playback. I've used 352x576 for some VHS captures which were children's cartoons. They look almost as good as full-D1, but that's probably because VHS doesn't contain much information beyond 352 pixels.

You should try both and see which one pleases your eyes more and is the additional playing time worth going to half-D1.

Yep. That's what I always use for my VHS captures. 352x480 in my case (NTSC)
There's really no reason to capture at higher resolutions.

-kwag

To encode, probably not, but to capture isn't better to have a higher resolution than the KVCD target ?

Yes, since scaling will be done by the capture card and who knows what resizing method it uses, probably a crappy bilinear to result in a even softer video. The card will sample a higher resolution in any case.