I have no clue really. A white Japanese Saturn is a model 2 correct? I would assume that the system is causing interference in the video line somehow, but the mod for a Model 2 only has one or two wires. Those wires shouldn't be anywhere near any of the AV lines, they should run in front of the Saturn's motherboard.
The only thing I can suggest is to open her up, and see if anything looks off.
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