video capture/mpeg converter card

I need something to convert VHS tapes and Hi-8 tapes to DVD. I will be doing some editing of some footage. (I assume that you can capture without compressing with an encoding card, but just want to make sure) From what I have read, mpeg4 seems to be what I should compress it to. I need it to have composite and firewire 6-pin inputs, but others are always a plus. I would like it to be a hardware encoder since most of what I will be doing is going right from tape to dvd. What would give me the best quality for about $300. I have a pci, pcie x1, pcie x16, firewire, and usb ports avaliable.

Would I need a dedicated HDD for the video, currently I only have a 320gb with only 130gb free space.

Software wise, Adobe seems to have a large following, so I think that I will get the Premier Elements 3. Is there a better software in that price range-about $100?

Thanks for the help.

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