Yes, use XScale/YScale if you want any proper results. LocalCoord is busted on the Y axis (in fact, it totally ignores it; try setting it to 9000 and it does nothing) and scales it the same as X for whatever reason.
What's the native resolution of Vanguard Princess? The scale formula for MUGEN is 320/Original.X, 240/Original.Y.
Therefore if the resolution is 640x480, your scale would be 0.5,0.5. I believe VP is 640x480 so 0.5,0.5 should be correct.
Spoiler: Unrelated to OP's question but useful info nevertheless (click to see content)