Glad you found the issue.
Regarding the color smearing, as I mentioned previously... "On a side note, outputting in 422 from the TVP when the input is RGB will smear the colors slightly. 422 is not very good for computer graphics."
Yes, this is cause by down sampling the color from 444 to 422. It is decimating the color information, throwing away every other color sample so will appear like averaging.
This is usually OK for video applications but computer graphics will suffer.
BR,
Steve