Sorry to hear your troubles.....
I have used one for a few months now and am completely pleased with it, albeit after quite a wrestling match with driver sets to get it all going (OpenGL, DirectX, DVD, and video-in).
"1. the card defaults my monitor resolution (currently 1024x768) to 800x600. Whenever I want to use the TV, I need to set to this resolution, because otherwise the image would "scroll" on all four sides."
That's because the TV out is limited to 800x600. Since it has only 1 rasterizer the monitor and TV have to be the same resolution. I don't find it to be a big deal to switch back and forth, it takes about 4 mouse clicks and 10 seconds under display properties to do it. Only a dual-head card will rid you of this "feature".
2. while using the TV-out, the monitor image is distorted (the picture is off-center, and there's a black bar on top of the image.)
Hmm, don't know about this, I never use them both at the same time.
3. the ATI DVD and VCD player applications are primitive and ugly, compared to the Creative player.
They work fine for me. They play the damn things, don't they? I always hide the player controls......
4. the capture is poor......
I've only used it for "quick and dirty" captures, you need the All-in-Wonder if you want MPEG1/2 captures.
5. to add insult to injury, there was NO visible difference between the 32 MB Rage Fury Pro and the 4MB Rage Pro Turbo. I tried Unreal, Quake2 and Unreal Tournament; did not check frame rates (forgot to do it), but I usually have a keen eye for things like that. No difference in textures, details or motion.
Huh??? My Rage Fury Pro took the place of a 16MB Diamond TNT1 - 3D performance DOUBLED, most definitely noticeable. Of course, there are many, many variables here.
Overall, I thought it was well worth the $90 it cost me. It should last as long as the rest of my stuff. I won't upgrade until I can replace the whole machine. (it's a classic Celeron 300A@464 setup)