So the lights only display colour with static images? Have you tried selecting effects to see how they track? e.g. Colour mood blobs.
There is a live preview, which shows you what is being grabbed, as well as how the LEDs should be responding on the edges. It is the little screen icon at the top right. Does it suggest the lights will be white or coloured during playback?
Under Configuration-> Capturing Hardware->Platform Capture:
You might try selecting a lower frame rate on the grabber settings, in case your driver can’t keep up?
Also there you should have Type: Automatic, so that it switches grabber from framebuffer to AMLogic when you start playback.
Have you changed any other settings that might relate to saturation?