same source:
"Go to
http://www.ati.com/ and go to the TV Wonder's driver page. Download the latest package from this page. Go to the 8500's driver page, and get the 'MMC 7.6 no dvd' and 'MMC 7.7 upgrade' package. Uninstall all previous MMC versions, and TV Wonder drivers before going on.
Run the program you downloaded from the TV Wonder driver page. Click 'Next' until you reach the page with the install directory. Make sure that the directory name indicates what version of MMC lies inside the folder, then take note of where the TV Wonder's MMC will be installed (we aren't actually installing MMC now, what this is installing are the installer files for MMC). Click 'Next'. The TV Wonder WDM Driver installer should start up now. Select a directory to install the drivers to, and remember where you put them.
Go to the Device Manager, and open up the Properties of the Multimedia Controller. On the 'Driver' tab, click 'Update Driver', then 'Install from a list or specific location' and click 'Next'. Select 'Include this location in the search', and Browse to the directory where the TV Wonder drivers are. Click 'Next'. When it complains about the drivers not passing the Windows Logo testing, select 'Continue Anyway'. Repeat the instructions in this paragraph, but click on the 'Multimedia Video Controller'.
Now WinXP will find a bunch of new hardware. For each of the windows that pops up asking for drivers, point it to the directory where you put the TV Wonder drivers. Once everything has been installed, reboot. (When I first did this guide, my computer froze during shutdown, I had to use the reset button to get it going. When I updated this, I did a clean install of all ATI stuff (video drivers, tv drivers, & MMC), and WinXP didn't freeze on shutdown.)
Run the MMC 7.6 executable that you downloaded. Click 'Next'. Make sure that the directory name indicates what version of MMC lies inside the folder, then take note of where MMC 7.6 will be installed (again, this isn't MMC being installed, it's just the installer files). Click 'Next'. Wait for the files to be extracted and copied, then in the window labeled 'Welcome to the InstallShield Wizard for ATI Multimedia Center 7.6.0.0', click 'Cancel', then 'yes'.
Now go to the directory where you put the MMC 7.6 files. Then, open up another window of explorer, this time go to the directory with the TV Wonder's MMC (the default location is C:\ATI\support\MMC_7_1_TVWONDER\MMC, if you didn't change the install directory from the default, that's where you need to go. Make sure you're in the MMC directory, not the directory one level above the MMC directory.). In the MMC 7.6 files, rename 'setup.inx' to 'setup.inx.bak'. Copy the file 'setup.inx' from the TV Wonder MMC files to the MMC 7.6 folder. In the MMC 7.6 folder, edit the file 'Install.ini'. Add the line 'DetectHW =0' after the line 'CDBuild= 1' in the Install.ini file. Under the 'File' menu, select 'Save', then exit the file editor. Run MMC 7.6's 'Setup.exe'. Go through the MMC 7.6 install. You may get a 'Cannot read REG file' error message. Don't worry about it. (Note: at this point, install DVD 7.6, assuming you've got access to it)
Now to update to MMC 7.7. Run the MMC 7.7 package you downloaded. It will ask for a directory. Again, this is just where the installer files will be placed; note where they're going. Click 'Next', then after it finishes installing the installer files, it will start the setup, hit 'Cancel'.
Go to one directory level above where the MMC 7.7 installer files were placed, and make a copy of the MMC 7.7 installer files' directory (I recommend adding 'unaltered' to the end of name of the copy). Go into the non-unaltered directory (we haven't altered it yet, gimme a minute), and rename the 'setup.inx' to 'setup.inx.bak'. Then, copy the MMC 7.1 'setup.inx' into the altered MMC directory, and edit the file 'Install.ini'. Add the line 'DetectHW =0' after the line 'CDBuild= 1' in the Install.ini file. Under the 'File' menu, select 'Save', then exit the file editor.
Run the unaltered MMC 7.7's 'Setup.exe'. Go through the MMC 7.7 update. Reboot. Run the altered MMC 7.7's 'Setup.exe'. Select 'Modify', and click 'Next'. Check the box next to 'TV', and click 'Next'. You may get some 'REG file' errors, don't worry. Enjoy MMC 7.7!
Chances are that you'll have the garbled image problem in the TV app. If this is the case try using AMD Man's workaround:
http://www.tc.umn.edu/~wilc0076/ATI/atifix5.zip
(Follow the instructions in the readme file to install it.)"