This the first time I have heard of this problem with the 442. Are the supplied cables you received with the unit damaged in any way, are there any bare wires on the supplied AV cables? Also, what model VCR are you using and does the VCR have a video out or are you just converting a coaxial to a line out?
If you have the right connections and the answer is no to most of my questions, make sure you have everything backed up to the PC, then select the files management icon, once you in the files management section, press menu and go ahead and format the 442.
If you are still having problems with only getting a B&W picture through the PVR mode please contact firstname.lastname@example.org