Out of curiosity, try this: Connect your GameCube to the LCD in question with composite-RCA cables. One possibility is that there is an issue with the game running on the Wii. Another possibility is that the LCD is deinterlacing the 480i signal improperly (possibly crossing fields from different frames) and that's why you're seeing the issue. -hl718
To be honest I would doubt that the Wii is doing something wrong compared to the GC. The wii has a perfect BC setup to my knowledge, memory addresses and all. It probably is just the de-interlacing.