Extended Desktop Displays In Black & White

I'm using a old radeon X700 pro pci express x16 and the s-video out to component for this. I hooked this up to my 42" 1080p Vizio HDTV with a s-video to component adapter and component cables. The HDTV says it's outputting in 720x480 and in just black and white. The picture isn't clear on text and such when you look at the tv up close as well.

I've tried uninstalling and reinstalling drivers, and changing settings on the catalyst control center for a while now too. And nothing seems to work. I know the component cables work because I've used them before for HDTV channels. Am I just going to need a new s-video to component adapter here? I really don't know what to do at this point. After trying all this, google and asking some friends online.

My system specs as well if this helps too:

3.06Ghz/533mhz fsb/1MB L2 Cache P4
1GB DDR2 533mhz memory (2x 512MB)
256MB GDDR3 X700 Pro ATI Radeon PCI Express x16 Video Card
500GB 7200RPM Hitachi HDD
17" CRT Gateway Monitor