Color issues in VHS video, editing issue after capture?
 

I'm having problems with certain blues/greens in my tapes (picture samples included). It's the worst when it comes to animation. What's causing this? I'm using a pretty good condition JVC S7600U VCR with a USB-Live2 Video Capture device (could this be my problem?). When I plugged the VCR directly into my HDTV, I noticed these issues, but they were less pronounced and cleaner looking.

Also, I captured in lossless AVI (Lagarith) using AmaRecTV 3.10 (YUY2, 720x480 @ 29.97 FPS). When I convert to H.264 MKV using HandBrake, I'm getting a 4:2:0 chroma subsampling. Why is this? Is there something wrong with the Lagarith codec or AmaRecTV itself, where it's giving me a bad lossless copy? Or is HandBrake specifically causing this problem? How can I get the end result to be 4:2:2, which is what VHS should be?

Can anyone help me with these issues?

Chroma noise.

Where did the VCR come from?
If eBay, not surprised whatsoever, lots of dud decks on there -- including all the BS "tested" and "working" units that do not function properly, and had no real testing (seeing lights, and playing a ratty old copy of TMNT, is not tested).

How did you determine it is "pretty good condition"?

There unit may be bad, heads not good.

Your HDTV has some % of NR, which is why.

It came from eBay. I determined it by how it was working and how my other footage looked, which was pretty good, but looks like it isn't as good as I thought it was.