I just received my SMS-1 and connected it to my system (including my 1070)! I used the provided composite cable for the video connection and used the Video 3 input on the 1070. I turned on the SMS-1 and wouldn't you know it, I too had a constantly scrolling picture! You should try to make adjustments to the SMS-1's "sliders" when you having a moving picture. It certainly isn't easy! By the way, my video out from the 1070 to my monitor is via component cables. I have to assume the problem is with the 1070's conversion. I only have this problem when using the SMS-1 (I don't have any game system connected). Outlaws, please help me out!