That picture looks like a classic SYNC issue. Screens on my arcade games look that way when the sync wires are not connected correctly. I am not sure how this little board works but if it uses sync then I would imagine that it uses either CSYNC which is composite sync or just composite signal with SYNC.
I can only guess but I think it looks like this version needs CSYNC which can be stripped out of the Composite signal. Many many arcade games and consoles games need CSYNC but some can live with Composite, others need just Composite sync without the composite signal.
If you are tech enough you can get a Sync stripper chip and wire it up and strip out the composite. This of course is just a suggestion based on a screenshot. If I get some more time I will look up that board you bought and how it works and see if I can make heads or tails of it.
Hope this gives you at least a lead to lookup some stuff..