Weird, i have the same setup and it didnt do that too me. Check under your display settings to make sure that you didnt accidently put it in black and white, or put it to color. If it is already under color mode, Then i have no idea.
I use FlyImage5000 to connect my PC to TV wirelessly. The quality is good! It works for PAL format for sure. You may get more inforamtion on http://www.pctotvconverter.com