STK1160 Grabber - Something is wrong and I dont think its my fault

I have been trying to get hyperion working with an external tv source since Oct 2015. Almost 1 year and I think I have tried every possible configuration option.

The good:
Hyperion and the LEDs work fine with Kodi and also with hyperion remote effects.

The bad:
The problem is with getting a good capture, because the LEDs only output black and white, flickering horizontal colored lines, or both.

I use a usb hub with power supply to power the stk1160 grabber to eliminate power issues. I have set my HDMI2AV to PAL and NTSC many times, and changed the hyperion config file to NTSC and PAL many times.

Clues:
1. When I connect the AV output from the HDMI2AV, I can see that sometimes the picture is black and white, sometimes it has color but there are horizontal colored lines (looks something like interlacing with wrong frame rate), and sometimes the picture looks good.
2. When I try to take a screenshot using SSH, the resolution I input (width, height) is never respected. The resolution is predetermined by the NTSC or PAL setting in the config file ONLY. The width and height options do nothing.
3. The resolution programmed into Hyperion for PAL mode seems to be wrong (360x192). PAL at full res is 720x576 and built into Hyperion I believe it should be captured at 360x288. However, Hyperion forces 360x192 and there is no way to change it.
<code>
root@osmc:~# hyperion-v4l2 --width 360 --height 192 --screenshot
hyperion-v4l2:
version : V1.03.0 (GitHub-b8f7642/c5d5f2d-1465599599
build time: Jun 11 2016 01:39:39
V4L2GRABBER INFO: width=360 height=240
</code>
4. I can reset the video when HDMI2AV is outputing the black and white, or video with colored lines by reinserting the power and the hdmi cable. The HDMI2AV can work properly in both NTSC and PAL mode, if there really is a difference when I switch between NTSC and PAL I havent seen it.

Here is a sample of the "interlacing" issue which flickers my LEDs.
<img>https://postimg.org/image/i3blfpdpz/</img>

Here is the image I tried to post above, notice the horizontal lines and color problem.

Thanks for your quick reply TPmodding. I didn't try the fushicai because I read it only worked with one old kernel from 2013. I would like to use the OSMC latest version.

Thanks for looking

[MEDIA=pastebin]azCTL6qh[/MEDIA]

"frameDecimation" : 4
did not help
I tried PAL and couldnt even get a screenshot.
I tried manually inputting PAL and NTSC resolutions, and also I tried reducing them by half.
Nothing is working.
I verified the video source looks good from the hdmi2av.
Please see the attachment, I am still getting a black and white image with horizontal lines on it.

Is anyone successful with the STK1160 and the latest OSMC and latest hyperion and latest hypercon?
With wips everything is ok except for some random flashes between 2 sec - 6 mins.

I purchased a UTV007 grabber and here is what I have learned.

1. The stk1160 was the cause of a bunch of weirdness in OSMC on the rpi (probably a driver issue).
- random all LED flash every 20-500 seconds
- the green horizontal lines which cause flickering (see above post's pic)

2. The UTV007 is plug n play in osmc, as is the STK1160

3. I cannot use hypercon to take a screenshot with the UTV007 without restarting hyperion.

4. The UTV007 works stably with OSMC, no more flickering.

5. The colors captured are different with the UTV007 vs the STK1160. Green looks light blue now (cyan), red still looks good, blue looks like purple (magenta), yellow looks yellow-green.

Question:
I cannot get the color calibration to work with the skewed colors captured by the UTV007. I changed the temperature and the pure color levels. I cannot fix the color mismatches I mentioned in point #5 above. In the hypercon color picker, the LED colors match. When I use the grabber, the colors do not match. The colors are getting messed by the UTV007.

So close, yet so far.