sygyzy: you have the right idea... just keep in mind that the CAPTURE ITSELF takes a lot more computer resources when you have a "dumb card" and not one that does MPEG2. Personally I recommend going the "dumb card" route -- one that does NOT do MPEG or any other compression... as new software is coming along all the time to do better and better compression.
If you are doing your own stuff for archive, I highly recommend MPEG2 on VCD or SVCD. Nero does a great job of burning VCD / SVCD... to do the actual conversion, the Panasonic MPEG encoder is considered by many to produce the best picture.
http://www.vcdhelper.com/ is a good site for VCD information (basically a VCD is a DVD on CD-R, obviously with less capacity - they are mainstream in China, but most DVD players will play them).
That should get you started, the rest is too off topic, there are lots of forums dedicated to this stuff!