I'm having some problem here, as I can't see this wrong "gamma".
Can you please elaborate on it?

If you are talking about the bars with a grey colour not so solid
(well, sometimes going pinky), then this is definitively due to theora
compression.

You're using a lossy codec, and this is its normal behaviour.
Other artifacts you can see in your video are obviously related to it
too. So I think this isn't bug in istanbul, but how compression works.

Next version of istanbul will probably come with a more flexible
compression/quality chooser, which will help here.

Cheers, Luca

-- 
 .''`.  ** Debian GNU/Linux **  | Luca Bruno
: :'  :   The Universal O.S.    | luca.br(AT)uno.it
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