RichG, Yeah I have tried Baldurs Gate and the color cycling is very apparent. As I said before it is mostly noticable on dark greens and greys, like the color palette in BG:DA. In bright games like GT3 and Klonoa it isn\'t noticable at all.
It can be a pain in the arse, especially when you spend so much on a piece of equipment that has the smallest flaw, but one that can really annoy the $hit out of you. I basically had to live with it and by the time you really start to get into a game you tend to notice it alot less anyway.
One way to check if the problem stems from your PS2 or your TV is to get hold of another PS2 (rent one if you don\'t have a friend with one), and test it out on your TV. Preferably get hold of one of the new models. If the problem still occurs then it is your TV just not liking the output from a PS2 (like mine), or if it doesn\'t occur then it is something to do with your PS2. I tried sending mine back to Sony but they could not find one problem with it, well not one big enough to warrant spending time to pull it apart and test every component.
My best suggestion is to try another PS2 on your telly and see what happens.
Cheers.