You need a program like
Mediaportal to help tune your TV picture down a bit. Max NTSC TV resolution is 720x480 and minimum for your computer (unless it's very old) is 800x600 so you have to turn it down using some kind of utility program. This ones a freebie and works well.
As for the color thing, do you have it turned to the right video input channel? Silly I know but just a thought since the monitor shows everything in color. My JVC has 4 video input channels and I can make my Playstation do B&W or sound with no picture simply by having the TV turned to the wrong input channel.