Will a frame TBC help with this distortion?
 

Hi, I have a video I am trying to capture with a JVC HR-S9800U and an ATI AIW 7200. It has the distortion at the top of the frame that you sometimes see on VHS.

Turning Digital TBC/NR off and using the video stabilizer actually removes the distortion most of the time, but there are still occasional flickers.
It's my understanding that a frame TBC is more useful for vertical jitter. Is that correct? Or would it be useful for this type of distortion as well?

(Not sure what caused the still frame to have the wrong aspect ratio, but you get the idea)

That's bad tearing. You need this workflow:

JVC with line TBC off >
> Panasonic ES10 or ES15 for passthrough >
> frame TBC >
> capture card

Not any random TBC, but specific models, known good versions.