AIW 2006 is a fricking Radeon 9600. I can't believe they actually produced such a thing and had the gall to put "2006" on it. Even if you consider it as intended for people looking for basic use, it's 2003 technology, not 2006, plus they already HAD an AIW 9600.
You can get a cheap software-encoding tuner (which is all the AIW uses) for PCI for 20 bucks, or a retail PVR-150 for 60 dollars for hardware encoding, or a card based on the Theatre550 chip for about the same.
For AGP you could go with a
6800GT for $143 shipped, and a 15 dollar rebate, so your total price is right around the 150 mark with the cheap tuner and would be terrific performance compared to the X300. Or go even cheaper and an X700Pro ought to blow away the X300SE, and are only about 90 dollars or even cheaper for a plain X700.