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Are you sure it's a Plasma? Never heard of a 19" Plasma, maybe LCD?
Anyhow as to your question, I don't really know, I think it's because the set isn't very good at converting the Composite Analog signal to Digital.
I have a Laser Disc player hooked to a 50" Panasonic Plasma and it doesn't look very good either, passable at an 8 foot viewing distance but up close there's a lot of noise.
When the LDP was hooked to a Sony LCD Projector however it looked very good.
Some sets may just have very good A/D converters and some don't.
I found that if I copied the Laser Disc to DVD using a DVD Recorder and then played the DVD on the Plasma it looks very good..
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