There is a fair bit of color noise in both cases, but it looks like the TBC-1000 is increasing the saturation making it more noticeable. It's possible the differences between the TV and PC monitor make it more noticeable on the TV.
The FS200 does not have digital noise reduction like in the TBC/DNR function in the newer JVC SVHS decks (one of those is demonstrated in latreche34 other thread). The line-TBC won't reduce color noise on it's own (On bad tapes it may make it easier for the video decoder in the next device in the chain to decode the color correctly, that doesn't look like an issue here though.) The FS200 has analog chroma noise reduction but it's usually way less effective than the 3D digital one in later SVHS VCRs as it's only looking for changes between a line or two, rather than being able to look at differences between whole fields like the 3D DNR is. (The downside of the 3D DNR in the JVC SVHS decks is that it can cause some ghosting between fields/frames.) That said, vcr issues or aging electronics can make it worse.
There is post-processing you can do to reduce the noise, tools like avisynth have a plethora of noise reduction filters, though I've found that even the simple HQDN3D denoiser that comes with ffmpeg and by extension tons of open source video tools can be surprisingly effective on it. If you are doing any post-processing it's useful to capture in a lossless format and compress to something else after any post-processing.
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A faulty input board or connection of a TBC can increase noise, mess with luma, which has a side effect of increaseing saturation and chroma noise. But that should be somewhat obvious if the TBC is at fault, by viewing both with and without TBC, at least directly to TV and to capture card.
@Hodgey, when you say the TBC-1000 is increasing the saturation, could it point to a fault with the TBC1000?
Not necessarily no, it seems these tbc units often do increase saturation a little by default. If it's just increasing saturation a little it's possible to lower it either with the capture card's level settings or with post-processing as long as it has not been boosted enough to be clipping.
Is the vcr noise filter setting set to edit, off(the default) or on? Aging electronics in the VCR can result in worse chroma noise, though it may just the tape in this case too. VHS color is very susceptible to noise due to how the format works, so VCRs would have circuitry to reduce it to various degrees, especially on higher end ones.
@Lordsmurf, TBC1000 OFF means removed from the workflow and directly into the ATI capture card. Apologies for not making this clear
@latreche34, thank you for the information. What I don't understand, however, is when the LTBC is OFF and the TBC1000 is connected, why the same amount of noise appears. Is this a fault with the VCR as well as the TBC1000 ?