James,
Either the Matsui DVD is set to output `PAL` only which would account for the B&W picture, or your TV cannot handle NTSC and/or PAL60 which again would cause the B&W picture.
I had the Matsui 110 previously and didn`t alter anything on the setup menu, because the 110 handled it automatically when I played an R1 disk.
So my guess is that its your TV that has the problem. Check the user guide for your TV and see what the tech spec says about picture standards it supports, ie NTSC or PAL60 are required for R1 playback.
Although if you can get RGB setup from the DVD and on the TV then this would do it too.
Cheers
Chris