What might be the cause of the weird colors and picture mis-alignment?
Have you tried different resolutions on the Android video source and changing the refresh rate between 50 Hz and 60 Hz. My cheapie tablet offers:
1920 x 1080p 50 Hz
1920 x 1080p 60 Hz
1280 x 720p 50 Hz
1280 x 720p 60 Hz
720 x 576p 50 Hz
720 x 576p 60 Hz
All choices under Settings-->HDMI-->HDMI Resolution.
My guess is that you are sending a higher resolution than the target can handle.