The problem with VirtualDub is that uses the VFW (Video-For-Windows) routines, where the max vertical res is 240 lines. Instead, try this program:
iuVCR from 0
iuLab . It's mini-sized (<1 MB), used DirectShow to get past the 240 limit (I can do max 720x480 on my AverTV studio), and except for a 3 second start/exit delay in the shareware version, is fully-functioned in every sense.
About the Audio Problems, iuVCR has a tweaker that can fine-tune detection of the audio source. Try it and let me know.
BTW, some people have reported that it is tough to plug into ATI's video output. Try changing the source formats in iuVCR to RGB24, RGB555, YUY2, YVU9 one by one to see if it works.
The best thing is that iuVCR can compress in real-time to VFW codecs, notably, DivX 4.x. On my
system rig , I can do real time comp at 640x480, 1-pass CBR medium to DivX 4.12, and at 640x240 (which, btw, automatically eliminates the need for interlacing, and technically, you don't lose any vertical res), 1-pass CBR slowest to DivX 4.12. Great for capturing movies, and not eating up your HD with MPEG-1/2 ala PowerVCR/ATI/Aver Recording Apps.
A request...while compressing anything from my TV tuner to DivX4.12, if my 1-pass CBR quality is Fast, Fastest or Medium, the output has a strange graininess in it. This problem is eliminated when using quality Slow or Slowest. Any of you have this problem?