Yes your system would work with SVP + madVR. Read about madVR here
http://forum.doom9.org/showthread.php?t=146228
madVR is a bit more complex to configure. It improves the image quality by scaling your videos up/down with better (and more demanding) algorithms, but you have to tell it which algorithms to use for each type of video by configuring different profiles. With SVP @ 60fps, madVR has 16.6ms to render each frame without dropping frames. Press CTRL+J in MPC-HC to view statistics and select an algorithm that keeps you under 16.6ms.
At 120fps, however, madVR would only have 8.3ms to render each frame... unless MAG79 would edit SVP to first allow frame processing by madVR and THEN increase the frame rate.