I have the SIIG card and Visual Studio.
I don't think that the software is that bad, what do you consider good software? If you have a recommendation as to a better, but affordable package for DV editing, PM me.
As for your problem, I have run VS in Win98SE and W2k without problems. W2k would drop the connection to the camera a lot (another reason that I run 98SE now).
One problem that I did have in w2k was that my hard drive would screw everything up when I went to capture and I would get a choppy, sh!tty slide show, probably what you may be experiencing.
I determined that UDMA33 was not working right for some reason, went to my BIOS and forced PIO4, and the problem was solved. But, PIO4 was not quirte fast enough so things still looked a little poor. Eventually, I reinstalled the OS and everything was fine.
For started, I would: 1) don't overclock, 2) keeping lowering the mode of your hard drive until something works.
Try running some kind of HDD transfer rate monitoring program in the backgound. I found that there was a sudden down spike in the transfer rate that caused everything to go to sh!t.
Good luck,
Jeremy806