That. and also what power supply are you using. Some of the later revision boards have crap filtering in my opinion. A cheap switching supply might work find on a early revision. But on a later one the inerference might be horrible. If so, try adding a small 1nf cap on the vide encoder (output and ground) And maybe a 10 uf to. Or change the supply. Later revisions work better with a linear supply i think. (Not the one chips, i know nothing about them)
Sounds like PPU2 is starting to fail. That seems to be palette hardware problems. PPU1 does actual video processing, PPU2 does add color to what PPU1 chip processed. There's a small amount of DRAM inside each PPU chip which serves as scratchpad memory for internal operation and when that memory goes bad you have that kind of "effects" show up on the screen.