ok. I dig it some more and it seems that you are running into a brick wall, simply saying it will not work with the S-Video connection. You would need a converter in between

This observation is from NewEggs (I read one on the German Hauptpage also):
"
Cons: when connecting an external source to the S-Video, the video is black and white.
Cause
Simple to S-VIDEO adapters (unpowered) do not convert the signal to S-Video at all as they just rewire the pins
Resolution
If you want to get higher quality than Composite, then it will be necessary to use mains
powered RGB to S-Video converter. If it doesn't require power then it isn't a converter - it is just a simple adapter and will not do the job."
or another alternative here?
"I did not experience this S-Video issue with my
Aver Media AVerTVHD MCE A180 on my other system. It was simply just plug_and_play. I did not need a converter to achieve color video."