I had the same problems with the MP2 thing, I did a few tweaks and everything works fine now, well almost. Also irq assignments are not/should not be a problem in W2K.
This is my personal opinion and it has worked for me and others I have corresponded with.
You didn't say what type of mobo you have? Here's what I recommend.
Goto rage3d.com and download the latest drivers and read the Radeon Guide and specially the part about the "HyperZ in the Registry" you'll probably need to tweak those reg settings.
1. If you have an Asus board, update your bios to 1005C or later.
Once the bios update done, hard boot and go directly into bios again. Reset the defaults, save and HARD boot again, goto bios and then modify your bios all you want. save and Hard boot again.
2. re-Download DX8, VIA 4-1 v4.28 (if you have a VIA chipset) and the 4.13.7068 or 5.13.3092 ATI drivers.
3. Uninstall all ATI components using Add/Remove Programs in Control Panel
4. Locate the ATI Multimedia folder in C:\Program Files, and remove it
5. Do a Find Files and delete any ATI*.* files that you think should not be there.
6. Restart Windows (in VGA mode)
In this order.
7. If you have a Via chipset Install the Via 4-in-1 v4.28 drivers from
http://www.viatech.com/drivers
IMPORTANT: make sur the AGP support is loaded in Standard mode (not turbo)
8. Install (or re-install) the latest version of DirectX (8.0) even if you already have it installed.
9. Install the latest ATI display drivers, AND do not restart or reboot your system.
10. Search and locate ATIGART.exe (in the ATI/Gart dir) and rename it to OLDGART.exe
11. From the CD - Install the ATI Multimedia Centre ONLY, no drivers or VGART.
12. Restart the system, set your video defaults.
13. Do the reg tweaks recommended from Rage3D / Radeon guide. Reboot.
For some weird reason, this setup seems to work better. Once I did it this way it cleared a bunch of problems I was having and was able to play MP2 files no matter where they are located on the HD. Hope this helps.
On the capture and compression thing.
:|:|:|:|:|:|
ATi doesn't (yet) support Video for Windows on the Radeon cards, it is however supported on the AIW-128 GO FIGURE. VfW is an industry standard that is included with every capture software and hardware on the market. Not supporting VfW on an AIW Radeon is like having the Gforce2Ultra not supporting D3D (AAAAARRRRGGGG DAMM YOU ATI, YOU BUNCH OF FOOLS :|:|:|:|
OK I feel better now, so since DAMM YOU ATi doesn't support VfW there's no capture device installed. you have to capture through software that supports DirectShow. Unfortunately hardly no software supports direcshow video capture. There has to be some sort of brain dead lawyer responsible for this at ATi. OKOKOK... so you can choose MPG as the compression and modify the bit rate, to have smaller files or if you have divx installed you can choose AVI and choose divx as the codec. If you want quality I'd go with MPG first and modify the bit rate, if you want small files divx is my choice. Good luck.
Edit:ATi bunch of fools.
sorry