Check the +5 voltage at the board. I had similar graphical glitches in my Punch-Out, and found that the voltage was at +4.89 VDC. Adjusting it to +5 volts solved the problem. For the original PP-1000A power supply, the adjustment pot is inside at location VR2. Since the power supply's top housing has ventilation slots, you may be able to adjust the pot with a long thin screwdriver, but it is easier to just remove the top of the housing to adjust the voltage.
On the boardset's card edge, pins 15-18 are for +5 VDC, and pins 11-14 and 54-56 are ground.