The algorithm used by PIL v1.1.7 gives \'washed out\' looking results. When converting the same source data using ffmpeg
it looks correct. Using mplayer
If you look at Wikipedia's definitions, you can see that there are two conflicting definitions for YCbCr. The ITU-R BT.601 definition compresses the values to the range 16-235 to provide footroom and headroom, while the JPEG version uses the full range 0-255. If you were to decode values in the BT.601 space using the formula for JPEG, the result would definitely look washed out.