The camera and the VCR will have slightly different video output levels. It sounds to me like the settings in your capture device are calibrated to your VCR and not the camera. If you adjust the contrast/saturation settings to be optimized for capturing from the camera, then you should get better results.

Re-reading your first posts:
I looked up the Sony camera you mention (CCD-TRV32). It seems to be 8mm (not Hi8) and does not have an s-video output.
And I fixed your images for you. It was nothing to do with the hosting site, you had just implemented the [IMG] tags incorrectly.