What you are doing to your adapter is joining together those 2 wires and making it composite. While you have lost the quality of S-video you get your colors.
maybe use a capacitor instead of a straight wire to join the color back in?
http://www.epanorama.net/circuits/svideo2cvideo.html[/html]
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You lost me at capacitor, a capacitor has nothing to do with this at all, (at least I think so), but the link was very good.
If you don't want to open up your scart adapter, then you have another choice which is an S-video to Composite adapter. It is does the exact same thing as the mod I posted expect you don't have wire anything.
[url="http://www.svideo2rca.com/fsvfrca.html"]This Female to Female[/url] adapter is really good for the GP2X because you can just stick it on to the end of the tiny cord and then just plug in a regular Male to Male composite cable and you don't need to have your face glued right up to the TV.
The other choice is [url="http://www.svideo2rca.com/fsvmrca.html"]a Male to Male adapter[/url] which is good if you already bought a fancy adapter for your GP2X's dumb Male S-video. So you just plop it right on the end of your long cable and presto you have your color again!