So what happens when a TV
can accept a 60Hz picture, but not display NTSC colours?
My brother once bought a DVD that would only play in monochrome. When I checked the DVD it turned out to be outputting a 60Hz signal with NTSC colour. I tried connecting the player with a SCART lead and switching the signal to RGB. It fixed the problem...
Also, when one of my mates first tried to play an American game on his PS1 it displayed a monochrome picture even though his TV could accept an NTSC signal. It turned out that his PS1 couldn't output NTSC colour. I suggested he bought an RGB SCART lead, as it would probably bypass the problem. It fixed the problem...
Y2richie: if I were you I would definitely try an RGB cable. You should be able to pick one up very cheaply (under £10) as old PS2 RGB SCART cables are compatible with the PS3.
Even if it doesn't work with that game, its still likely to improve the picture with your other games.