Thats basicly what I do, I have a ATI AIW 128pro, capture to .mp2 and convert to divx with vidomi. I have a VCR plugged into the AIW and just record from that. The faster computer you have the better for capturing, but it looks like your doing better then me in that department, I running a 1gig Duron, 512mg ram, 80 gig seagate HD and DVD-r, and it does allright but should be a little faster.