I have Windows 7 64bit, Virtualdub 1.10 and Avisynth 2.6 MT. Virtualdub Input video pane turns green when Virtualdub is the active window. When it's not the active window, image reappears. When I hit play, image reappears. Disabling directx fix this issue but I read this is just a work around. Maybe I need VFW drivers?
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In the old days only one program at a time could use video overlay. When you have DX output enabled VirtualDub probably relinquishes video overlay and falls back to Windows GDI when it's not the foreground app. My guess is the color format used in the DX windows isn't compatible with your graphics card. You can try forcing the input colorspace with Video -> Color Depth... Is it all videos/scripts that do this? Or only certain ones?
But there's no good reason not to simply disable DX output these days. In theory, DX output is a little faster. But it introduces other problems like unpredictable color decoding, etc.
It turns green when it's the foreground/active window. It happens on all scripts. Changing Video -> Color Depth from Autoselect to any other settings fixes it. Hope this is not a workaround.
They're all workarounds. Maybe updating your graphics driver will fix the problem.