Update: I exchanged my EyeTV HD for another unit and experienced the same problem. I talked to Elgato tech support, the assured me that the quality isn't suppose to be like that but they are stumped too. They told me to send them my system profile information and they would pass it although to a higher tier tech support.
At this point I baffled. I tried two different EyeTV HD, two different component cables, two different usb cables, and two different video sources and they all have the same problem. To top it off, I tried it on two different computers.
As a side note, I did try the connection using composite cables and the double imaging seems to be gone but the picture is way too blurry to be acceptable.
Can anyone think of anything else? Anyone else have an EyeTV HD that can chime in? Thanks.