Your TV is NTSC and the box is sending out PAL video by the sounds of things, especially given that there's no colour, as well as the rolling. I've never tried to use one of these things with analogue video before. Is there anything in the settings about switching PAL or NTSC video?
Think you should be looking for NTSC, 480i, 60Hz for the USA. Is it an old CRT television you're trying to use? Because otherwise I'd say use HDMI, because the video quality is much better than composite analogue via RCA cables.
Given that it's a cheapo thing from China, which uses PAL, there's a chance it was never tested with NTSC or it's incapable of that mode. Most of the times they're connected up with HDMI, and so PAL or NTSC doesn't matter.
FWIW and AFAIK, up until digital, most TVs in North America were NTSC only, whereas in Europe and most of Asia they tended towards dual-mode or multi-mode video capable, PAL, NTSC or SECAM.