I have a number of VHS tapes in both PAL and NTSC formats.   My VCR is a multi-system while my TV is PAL. 

I do not have any problems in playing PAL tapes in VCR and take the output thru Dazzle 100 to my PC (Dell Inspiron + Windows Vista) and edit using Pinnalce Studio 12.

However, when I try to playing the VHS tapes in NTSC format and take the output thru Dazzle 100 (set source format as NTSC) to my PC I can only get Black & White video in my PC. My VCR is connected to Dazzle using video/audio cables (Yellow/Red/White). 

The same VCR output can be viewed in my PAL TV with proper colours.  So I tried connecting VCR to PAL TV and PAL TV output to Dazzle.  In this case, when I set the capture source format to NTSC the picture can be viewed but only in Black and White mode. If I set the capture source format to PAL  then there is no picture at all.

Appreciate if anyone can help.

The issue here may well be that either your VCR isn't truly multiformat, or you are using the wrong settings on the VCR. Many VCRs (mine included) will play back NTSC, but does so by encoding the output as PAL60. This is a "trick" format that uses the NTSC framerate and resolution but the PAL colour encoding method. Therefore you can play "NTSC" on a PAL TV which can display PAL 60 - and most of them can.

If your VCR is truly multi-format, it should be able to output a true NTSC signal, and if your TV is PAL, it won't be able to display a colour signal.

So far, that's all OK, except that the Dazzle 100 isn't capable under normal circumstances to record a PAL 60 signal in colour.

There are some workrounds for this, as a lot of gamers in Europe want to record the output of their xbox, which is PAL 60.

The best place to start is HERE

and welcome to the forum

Followed in the instructions (download AMCap and use) and confirm that I am able to capture videos in colour.

Thank you for your prompt response and pointing me to the solution.