Here is the PAL DVE test via my DMR-ES10 feeding the composite output of my momitsu DVD player into the composite input of the ES10, and taking the SVideo out from the ES10 into the Blackmagic Intensity card.

It doesn't seem to be having the same problem as yours, but the rainbows are always there even when the pattern is stationary.

I accidentally had the player set to 4:3 letterbox mode, the next post has the capture after I switched the player to 16:9.

Also interesting, I originally had the player set to NTSC mode as well, even though it was a PAL disc, I captured the test pattern with the PAL disc playing in NTSC mode from the player into the ES10 also in NTSC mode, and it worked better, oddly. Less dot crawl etc.