TBC by Panasonic DMR ES15 causing blue horrible video

[super8boy]

Hi
I just tested a Panasonic DMR ES15 as a TimeBase Corrector to solve some issues on a couple of Hi8 tapes which were dropping sync and cutting off audio + video as a result.
Output of the DMR machine is S-Video (and I tried Composite as well, although I haven't tried the SCART via Output1 as I must get a Scart>>SVideo adapter first)

The unit seemed to be doing a good job of it (Source is a Hi8 deck in good condition with S-Video out), except that it kept on starting to make the picture go horribly blue with tons of artifacts, like these red bits on the picture I uploaded (audio & video dropouts are fixed by the DMR's Time Base corrector though, but at what cost...).

On stopping and restarting, I was able to get a few seconds of video playing well, until it started doing that weird thing again.
Rewinding and Fastforwarding show a well balanced image again.

Looks like it might be something from the sync of the tape itself.

I also tried to turn the DMR's comb filter off, then on again to see if it makes a difference and the blueness

I should also mention that the DMR's output is going into an ADVC100 (tried S-video and composite
I tried outputing to a Camcorder that does has Pass Through but similar errors occur

Bypassing the DMR (which acts as a TBC) gets rid of the Blue picture, but the dropouts are just too annoying with this material, so I would like a way to fix it.
Maybe other TBCs or Synchronizers might be able to solve it.
I've tried a Kramer TBC unit on these particular tapes, but it makes the picture go crazy when the tape gets out of sync.

Any help on resolving this would be greatly appreciated

ps: Here is a still frame (I blurred the part in the middle), so you can see what I am talking about

[Attachment 45392 - Click to enlarge]

[super8boy]

For testing purposes, I did play the same 2 tapes from a different Hi8 deck, via the DMR-ES15 as a TBC (to remove the dropouts) and the picture was perfect this time.

Video was output to a camcorder with PassThrough capabilities (didn't have to check the ADVC100)
With that second Hi8 deck, whether the signal was S-VIDEO or Composite throughout, no blue.

I really would like to figure out what causes this problem on the first machine though. Unless it's a faulty S-Video lead plugged on the S-Video output, but I doubt that as without the TBC, VHS and Hi8 tapes play pretty well on that unit with that cable (Deck does both Hi8 and VHS)