Same here since upgrading to Ubuntu 15.10 while using the image transitions.
Look like that one of the libraries has a problem with the color space / 
palette - 90's are back!

** Attachment added: "Screenshot"
   
https://bugs.launchpad.net/openshot/+bug/1509067/+attachment/4514785/+files/Bildschirmfoto%20vom%202015-11-07%2016-34-09.png

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https://bugs.launchpad.net/bugs/1509067

Title:
  Video looks distorted when editing, and it looks distorted after
  saving; I'm using Openshot on Ubuntu 15.10.

Status in OpenShot Video Editor:
  New

Bug description:
  The original video from my webcam looks fine, but when I've imported
  it, the video looks like it's been inverted and staticy; when I've
  saved the video to be sure, it came out as messed up as it was.

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