So options include...
Standard TV card for capture. $60 range.
Save to uncompressed or moderately compressed AVI. Edit, convert to mpeg. Mpeg on the fly will yield poor results unless you have a very very fast CPU. I wouldn't even consider keeping around any mpeg I can encode on the fly with my 1600+. Results mediocre to excellent depending on quality of card/signal when capturing to high quality format and converting later. For best results take a LOT of space for uncompressed. Will probably work under all new versions of Windows you'll want to use it under. PCI going away will retire a plain TV card before any driver issues.
Better than standard capture card. $100-1500 range
Same applies, but quality of capture improves significantly, how much depends what model.
Drivers may leave it unusable upon your next Windows upgrade depending on model. Likely workarounds for most.
Video card with TV-in. Price varies by model/generation. Like ATI All in Wonders, Geforces with VIVO, etc
See comments for Standard TV card. Most don't help take any load off the CPU, guess some of the ATI's do, but it's only doing part of the work (like 5-20%?) for mpeg on the fly which still requires you to have a fast CPU to pull that off with any quality.
MPEG hardware encoding capture card. $100-? range
Saves to mpeg1/mpeg2 on the fly. Saves a lot of time, just encode in real time, burn. No hours spent encoding mpeg.
Disadvantages - getting video/audio out of sync on edits, any recompression editing will hurt quality significantly since it's already a highly compressed file. Card will be absolutely useless if the vendor doesn't give you new drivers in the future. Workarounds not likely.
DV bridge. $250
Converts video on the fly and encodes it to DV codec video which you transfer on the fly into your computer over 1394(Firewire). Quality is quite good, around the better standard TV card type captures, not as good as professional capture gear. Size is 13gig/hr for DV which is quite reasonable, but capturing and encoding to other formats on the fly can be a problem currently. (Ex: Wanting to do DivX on the fly, I haven't had much luck getting DV to play with the current Virtualdub version, though this should get much better over time) Major advantage are consistent results, ease of use and no driver concerns ever again. Long as DV video is around and supported this will work for you. Route I went. Canopus ADVC-100 highly recommended if this interests you.
Mpeg on the fly USB devices. Price not sure.
Dazzle makes some products like these where it hooks up through USB, other companies too. First generation ones seemed to be pretty poor, but the more recent ones might be worth a look. Especially with USB2.0 around now, actual DVD bitrates are a reality, on paper anyway. Got drivers to worry about again, but long as USB is around the hardware can hook up. Not too familiar with the more recent ones so I don't know if they can do raw AVI capture or not, though I don't think so.
Just some general ideas, pick a catagory that sounds interesting and then go to
capture card ratings on DVDrhelp.com (Formerly VCDhelp.com) and read real user comments when you have a specific product in mind.
Lot of people will probably tell you to go with a TV card Newegg has been selling for around $56. Seems like a nice card and really that's a great way to start out. Even if you choose to change later you can still have TV capability in the same or different computer without having put out a lot of money for something you won't use a lot. TV card is what I started off with, a lot of my reasoning for going to the DV bridge was that it requires minimal CPU (I use a Celeron 300a as my 'capture' computer, encode there if I'm not in a hurry or on main if I am) for transfering the DV from it to the computer and leaves you with a smallish file to manage. That's what turned me off to TV card capturing, took a lot of space to get any quality and I tend to have bad habits about leaving a lot of HD space free
🙂.
Hope this helps,
--Mc
Edit: Fixing broken link. I'll drop in and check to see if I can answer any questions. No expert, just a regular guy who dabbles with video.