Hi Shae,
the Picture always looks good on the Camcorder screen, i would not rely on that. The Symptoms are obvious according to your Screenshots that the Heads need a cleaning or the Camcorder has a defect on the analogue output. For Firewire your Camcorder has a DV-Out, means, you could try that if you want to transfer the Footage to your PC, the easiest Method
Question: Is it Video 8 or Hi8 Footage you are trying to play with your Camcorder ? You have a Digital 8 Camcorder and some Models don't play back analogue Formats so check the Manual, okay ?
Cheers
Mick