You need to have a different HD recording your video than the one your OS is on. Also, this card record to ATI-TV standard, not MEPEG. If you want to change your settings to make it better, go to the settings tab on the ATI TV (or Video) Player, rightclick on the screen, and then you will see a capture properties Tab or Box. There, you will be able to set the properties to give you a better picture. I could give you more info but I skipped this card and bought a AIW Radeon instead so I know that card alot more than the older version.
If it works for you then don't fix it.