Wrinkled display from USB AV capture device

[jmschipper]

HP Pavilion dv6 3185ed Win 7
I want to have the composite video and audio from a satellite receiver displayed
Capture device USB2.0 Audio/video grabber (CMP USBVG5) with WIN7 drivers.
Spec's show PAL 720*576@25fps
VLC Media player 1.1.5. Select: capture drivers STK1160 Grabber and USB Audio Interface, Direct Show, Configure PAL and Composite Video, Hit play and after a while I get de audio and video.
Audio Ok. But the video is very wrinkled: eg a straight line becomes a sawtooth line
I tried almost every setting but no results to get it better.
The grabber is ok, because a trail version of Cyberlink PowerCinema shows great video display but the audio comes from the webcam mic. And a can't/don't know how to change it.

Any suggestion there to get LVC display right?