You're overscanning the vertical on the top causing a fold-over of the test pattern lines making for the extra blue lines appearing stretched out at the top of the screen. Shrink the vertical with the VSIZE control to make it all fit and the extra lines will disapppear.
As far as the strange blue edge... are you sure the test pattern generator isn't doing that? The only other thing that could possibly cause that is some really wacked up convergence rings AND additional magnetism around the neck or back of the tube that would not be allowing the RED and GREEN guns to deflect to the entire width of the screen.
Either that or the edges of the Red and Green grids are toasted (the grids help propel the electrons to the front of the tube). However that would be very very unlikely.
If this is indeed the problem of the tube and not the pattern being generated, Ken will have to help on this one!