Some really good news. I have made major progress with my camera today and now sort of have a picture now, a squashed picture that is. The picture vertically fills 1/5 of the screen at the top. I can guess there's something in the vertical section that still needs to be fixed. Anyways I've made a video of the camera in action
http://www.youtube.com/watch?v=WkZNMAAFf80 in this video I move my fingers in front of the lens and as seen on the screen. I wonder if anyone here can tell me what is causing this vertical issue?
I also now have a Tektronix TAS475 CRO which I got from a vintage TV collector for free so I now can easily get accurate readings from the waveforms and can make necessary adjustments when needed.