What you're experiencing is a syncronization problem.
You're laying a new signal down over an older signal and without anything to get the timing correct between the two signals, you're seeing the visible results.
Think of it this way. Video runs at 30 frames (60 fields) per second. If the original tape is at frame 15 and you "crash edit" another signal on top of it such that THAT signal is at frame 05, you're going to have a problem because the timing signal (black burst) of the first signal arrives at a time different from the black burst of the second tape.
Even if you're just "cutting in" a new signal on top of the old, the distance between the erase head and the signal head on your recorder will likely guarantee a period of time when you're signals will be unmatched and you get the rainbow "lost sync" effect.
The "flying erase head" was developed specifically to fix this problem.
"pre roll" on older linear editing systems was designed specifically to give decks time to "line up" their signals prior to edits.
Hope that makes things easier to understand.