That Lilliput one on Ebay will be an STN screen, and from what I have read here (do a search on STN) it is crap.
TFT = Thin Film Transister
LCD = Liquid Crystal Display
TFT is a kind of LCD technology, so they are almost the same thing, and the two terms always seem to be used simultaneously or intermittently.
For the best picture, you will want a VGA display, rather than composite.
The JAYCAR one is still composite, and the resolution or 1140x234 is still very low on the vertical resolution, so any text will be unreadable.
1140x234 gives 266,760 pixels, and the Lilliput one on Ebay is 230400 pixels.
Most widescreen VGA displays are 848x400 (339,200 pixels). If you can find one, then VGA will give you the best picture quality over any composite display you can find.
However, if you are not going for VGA (and I seriously consider you do if you want to display anything with some text and have it readable) otherwise both those you listed will give you similar results.
Of course all this is just my opinion and intepretation of what I have read and taken in over the past 2 weeks i've been visiting and posting here and must be taken with a rather large hopper full of salt (as opposed to a single grain of salt)!!
Garry