Analog TV reception distorted and choppy | ATI TV Wonder 600

I have a seemingly simple problem. Analog TV reception with TVtime is horrible quality. A VCR is outputting NTSC ch.3 to an ATI TV Wonder 600. USB 2.0 is enabled in my laptops BIOS and I tried different ports, and digital TV works perfectly in Kaffeine, so it's not a bandwidth issue. The ATI TV stick is not getting too hot. CPU, GPU, and RAM usage are fine.

Here's a video demonstration
https://www.youtube.com/watch?v=HG_OC8yBiSg

What could be the issue?