Crossbow - Forgot to ask - have you at any stage adjusted or are looking at adjusting R56 and R57 pots on the 7800? I recall trimming these on one of my more 'knackered' pal units as they had poor colour until they were trimmed for best results.
I have already adjusted both of these knobs using the color bar generator to adjust the 2600 wheel, and Rev's utility to adjust the 7800 wheel. LCD flatpanels are notorious for producing odd colors on the 7800. I did forget to mention that these shots are ran through an HDMI upscaler. None of my flatpanels have native s-video input on them. So all my s-video systems run through a cheap monoprice Comp/S-vid to HDMI out upscaler. Let me get some shots taken from the PVM and see how that compares next. But I will tell you that I think some of the bleeding and ghosting could be minimized further with additional caps and or resistors before the video out on the chroma line perhaps? I'm not an engineer so I leave that stuff up to the experts. Also lets not forget that Magic is in PAL country and I'm in NTSC land and the colors will always be different in that regard.