As you can see, we reached the max depth on this and any reply will not attach to your note.
The distortion is too vague a description and I'd have to see it to guess where the issue is. HOWEVER my old Hi8 camcorder was distorted on video captures. The fix was to bounce copy it to the VCR and then to the PC.
This was such a pain and I don't use that camcorder any more.
The reason was the frequencies were too far off from the NTSC standards. I didn't want to pay for it to be fixed. I replaced the camera.