Dave, thank you for your kind reply. The video looks fine in FCP (as good as amateur Video 8 footage looks). I don’t notice the black edges, etc during playback in FCP. I will check again and look closely. The only noticeable feature throughout is in some scenes, the white is very hot, but I think that was a result of the consumer based Video 8 camera technology back then.
I am wondering, if the A-V capture did overprocess the footage, what would be the rememdy (if any) besides re-capturing (that would not be fun ;).