Trying to import analogue video from VHS

I _assume_ you're feeding PAL video into the MV500i... one of the simplest ways to lose color information is to feed an NTSC (or PAL60) source to a standard PAL display.

Another possibility is that you're losing the chroma signal. I believe this camcorder has a composite (CVBS) analog input. If you're tapping off a SCART connector, make sure you use a SCART to composite cable, not SCART to Y/C (luminance/chroma). Are you using the same cabling with the camcorder as with the TV?