Smearing usually occurs on Composite Video connections and is generally unavoidable - unless you can switch to using S-Video or RGB connections.
It occurs because the brightness and color information is transmitted as one signal and the two parts have to be 'bandwidth-limited' to avoid them interfering with each other.
A normal TV signal won't usually show a problem since the content is different - smooth edges of people and photos don't show much of a problem, but the sharp edges and fine detail of computer text and graphics will usually have a problem.
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