<< 1. Reception is a little fuzzy. Is this normal? >>
No, reception should be as clear as you would get thru a normal TV. If
there is static or fuzz, then check the coax connections and/or try
adjusting the antenna.
You can also try the alternate output channel from the VCR (switch from 3 to
4, or vise-versa)
<< 2. Can I use my VCR remote to change channels in the TV tuner? If so how? >>
To the best of my knowledge, no. There is nothing on your computer (i assume)
that would be able to recognize the signals from the remote and be able to
pass them on to the ATI Video Player (TV Tuner) app. As long as your passthru
is set to 'vcr' then changing the channels on the VCR will allow you to watch
those channels on the AIW, with it set to channel 3. Some VCRs may allow you
to change to another available channel on the Tuner, so you could watch one station
while taping another on the VCR.