I did as all of you suggested and BOOM... true, unadulterated, clear & crisp RGB! The sound comes through clear and the pixels have ZERO bleeding.
It appears that not grounding the 8pin DIN through the two extra holes & soldering them down makes a world of difference. Aside from the 5 main pins on the 8pin DIN, those 2 extra pins (which I took from the 5pin DIN, and swapped them onto the 8pin DIN) instantly cleaned up the picture and created no problems in the visual department.
I'm not too good with circuitry (my friend solders and we work together) but thanks to this discussion, I got my results and who knows? Maybe there may be another person who ends up as lost as me and may need to find this thread to lead the way to clearer gaming!
Thanks for all your help, everyone! I booted up Parodius Da! this morning and couldn't believe how much detail I missed simply using composite signals.
The PCE is new again!