I'm trying to capture hi8 tapes, using Canon ES50 camcorder and pinnacle USB 500 device for analog to digital capture however the tapes are so overexposed and washed out. I don't remember seeing them like that a few years ago. I know it's not the capture device since I tried another source and it looked fine. Unfortunately this camcorder doesn't have S-Video so I'm just using composite. I'm wondering where the actual problem is here, has anyone ran into this at some point?
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Your Hi8 analog was Studio RGB and is now digital and needs to be switched to Computer RGB. Then all your color will come back. Look for a color-correction setting in your Pinnacle software.
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The capture software should offer an option somewhere to adjust the brightness, contrast, and saturation. This may or may not solve the problem, if the levels are being digitally clipped.