If you have a bit of spare cash (~40EUR) get this: http://arcadeforge.net/Pi2Jamma-Pi2SCART/PI2SCART::264.html
or this http://www.rgb-pi.com/
These are dedicated RGB solutions for SCART TVs. No lag and 1:1 amazing picture quality.

@vykyan

No problem. Glad it helped.

Now, finally I found another image from the retropie facebook grp... tried it and BAM, no more color problems!!! Wth?
Guess I need to compare the configs since this last one was pre-configured for crt.

Awesome! :) Who would have thought-.. Thanks all!

Great, many thanks for the answer! :D I am going to hook up my RPi with HDMI -> VGA and VGA -> Scart so I got scared as I already ordered proper adapters and haven't even thought about it :P
I will try to give some update as soon as I got some time to test it (it would need additional RPi settings to be changed so probably it will take me some time).