Apart from the lack of TBC as vwestlife already told you, which is the main problem in the video you uploaded, the S-Video capture has actually more detail than the composite one, as the attached snaps show; notice the additional detail in the tomato sauce jar label, the clearer division between both electrical outlets faceplates behind the olive oil bottle, etc. The image grain is the expected on a typical low-light indoors recording with such cameras.
Composite capture:
vlcsnap-component-amarec(20260105-1109).png
S-Video capture:
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The lower grain in the composite capture is due to the lower bandwidth of the video when crammed through this interface; if the grain bothers you, you can surely do a better job at filtering it without losing real detail with composite video, so to preserve the highest source quality, capture with S-Video. Once you have solved the TBC issue, make sure you are capturing with the appropriate video levels on your capture device. Both the composite and s-video capture show clipped whites as shown in the next image in the histogram (outlets' faceplates). You will find more details about levels adjustment in any
VirtualDub capture tutorial.
vlcsnap-s-video-amarec(20260105-1108).png
However, there is an additional problem as you have got voids in the histogram (dark vertical lines in the histogram), which are related to limitations in the proc-amp built into your capture device (more information in
this thread). I do not have any experience with your capture device, but I can tell you I don't have this problem with an ATI All-In-Wonder Radeon 8500DV.
Here is the avisynth code I used to display the histogram in
Virtualdub, if you want to have a try with it just copy the code into notepad and save it as "histogram_test.avs" file, and drag and drop it into VirtualDub.
Code:
AVISource("component-amarec(20260105-1109).avi")
ConvertToYV16(interlaced=true)
Crop(20,20,-20,-20)
Levels(20, 1.2, 240, 0, 255, dither=true)
Histogram()