My Gainward drivers defaulted to TV for the video-in so I had to change it to s-video in the properites. For my audio card I also had to go into the mixer and un-mute the analog/line-in.
Using Ulead DVD MovieFactory the motion artifacts are horrible even at DVD quality, a shaking or strobing effect. Next I'll try InterVideo WinDVD and VirtualDub to see if I can get a better capture. My system is a P4 3.2 with 1 GB and XP Pro so I'd hope this isn't from dropped frames.