The cable from the sat is S-video and works fine when connected to the "monitor". I may not have been too clear so here is the setup/situation:

No VCR Hookup-
Sat: S-video out, RCA audio out connected to Outlaw Vid2 S-video in, Vid2 RCA audio in. Monitor S-video out connected to TV. Works perfect in Video 2 mode.

With VCR Hookup-
Same as above but added VCR: VCR S-video out, RCA audio out to Outlaw Vid1 S-video in, Vid1 RCA audio in. Outlaw: Vid1 S-video out, Vid1 RCA audio out to VCR S-video in, VCR RCA audio in. Results in no audio or video in Video 1 mode when trying to recieve Sat signal. Plays tapes perfectly in Video 1 mode.

Video Direct Connection 1.-
Sat S-video out to Outlaw Vid1 S-video in. Vid1 S-video out direct connection to TV. Results in no video in Video 1 mode.

Video Direct Connection 2.-
Sat S-video out to Outlaw Vid1 S-video in. Monitor S-video out direct connection to TV. Video works in Video 1 mode.

I'm stumped. The Video Direct Connection 1 is why I'm leaning toward a problem with the Outlaw instead of a VCR input problem. Hope I'm on the right track.