For past few days I tried to sort out some image issues: white balance, sharpness, colour fringing, etc. And after a bit of research and trial and error I managed to get the AWB enabled, enable the sharpness and set a decent threshold and cleanup a bit the colour fringing. I will have to test tomorrow using day light how the AWB performs, however, now (is 2 AM here) I am able to get proper colours and with sharpness enabled can get a decent picture.
The image attached is actually 200%, original is 320 x 240 using RGB444 after applying the AWB, sharpness and some changes on gamma/colour matrix. While is not perfect, should be more than enough for my tracking system.