I have this bug as well with the same hardware.  I have found a (not
great) workaround.  I'm using Mythbuntu 11.10.

Using xrandr, I change the resolution to 800x600, then reflect xy, and
then reflect normal.  At this point the s-video looks correct.  This
workaround does not work using archlinux with kernel 3.1.6.

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https://bugs.launchpad.net/bugs/733270

Title:
  ATI Technologies Inc M52 [Mobility Radeon X1300] TV out show grey or
  green screen.

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