Maybe this is to obvious and you tried it already, but what the heck. Have you read page 41 of the manual for the AVR-3805? It sure sounds like you have not set the video input mode for either of the inputs you have tried. Maybe you have them set on "video" which will always only output a signal from the composite input. Set it to S-video and then the priority becomes S-video, then composite. If its set to "video" it won't shouldn't even be looking for an S-video input signal, so I don't know if that would cause a B&W picture or not.
I had a similar situation with my 3803, however I had no image at all, not a B&W one. So maybe there is a pin missing or bent in your S-video cable.
Do you get a color picture if you try either a composite or component signal out of your cable box into the 3805?