No matter what you do, DO NOT USE DIVX. I do massive amounts of video editing and this will result in massive amounts of data loss. Also, I'd also suggest against using the ATI AIW. If you must capture, grab a Pinnacle DV500 for best quality, or for lesser quality, grab a Matrox. The ATI card depends on your processor, which cannot hope to compete with the onboard hardware on professional capture cards. Using the ATI card will almost always result in dropped frames and other bad stuff. Also, once captured, DivX and MPEG-1 are bad. They used to be great standards, but now, newer and better codecs have come out. If you use MPEG-4, use XviD instead of DivX. It's more customizable and has beat DivX out in almost every area. Instead of using MPEG-1, MPEG-2 (what.vob files use) would be a far better choice. Personally, if you have the space, I'd go with HuffYUV. Lossless data compression at a price (LOTS of space).
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No matter what you do, DO NOT USE DIVX. I do massive amounts of video editing and this will result in massive amounts of data loss. Also, I'd also suggest against using the ATI AIW. If you must capture, grab a Pinnacle DV500 for best quality, or for lesser quality, grab a Matrox. The ATI card depends on your processor, which cannot hope to compete with the onboard hardware on professional capture cards. Using the ATI card will almost always result in dropped frames and other bad stuff. Also, once captured, DivX and MPEG-1 are bad. They used to be great standards, but now, newer and better codecs have come out. If you use MPEG-4, use XviD instead of DivX. It's more customizable and has beat DivX out in almost every area. Instead of using MPEG-1, MPEG-2 (what .vob files use) would be a far better choice. Personally, if you have the space, I'd go with HuffYUV. Lossless data compression at a price (LOTS of space).