Several software versions ago, the WinTV software supported video capture. I'm not sure if it still does (don't use mine anymore) or not. When it did, I was able to record to Divx (using either 3.11 or 4, as both were installed on my pc), but I couldn't get any sound in the recordings. I never worked with it beyond that though, it was more of a "wow, I really can do it" type of thing.
i gave up on ATIs softare long time ago. What version are you using? I hear 7.8 some people are using are not bad. They are only betaing 7.6. Can it record straight to DiVX?
In terms of features, showshifter was nearly the holy grail. It always worked, but damn, its so ugly.
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