What's wrong with this picture? (virtualdub framegrab)

Plays fine in WMP.
I can encode fine in Canopus Procoder.
I can encode fine in Mainconcept.
Tmpgenc plus 2.5 encodes what you see here, as does CCE Basic.
Can anyone shed some light on what I need to do to encode this in tmpgenc 2.5 please?