can you see if the problem is the same with just using the composite output from the CD32? if it is, then i suspect that your RGB2SCART lead only has leads connected to replicate a composite output connection.
any chance you can test with the S/VHS output too just to make sure that when the TV gets enough signal information it can display a nice picture.
i got this kinda problem using the composite in on my lcd tv. actaully the picture would move left to right and then back by one or two pixels every couple of seconds as i guess the TV was having trouble trying to figure out the display timing.
i stumped up for a full RGB to scart lead from amigakit and all was well.
but as the problem you're getting is similar to the support forums i'd suspect that...
just try all avenues before calling it in :-)
