Recommendation for Video Capture Software

Folks, I have a whole bunch of Hi8 videos from years ago that I would like to capture to a format I can play on Connected.

I have an EasyCap D60 USB Video convertor which works fine, but every bit of software I try to produce DivX files with gives poor results. Some will record only the video, some aren't recognised by the Connected server. Quite honestly, it's a nightmare.

I've tried Debut Video Capture, VirtualDub, AVS Video Editor, Video Capture Master and loads of other amateur efforts. Everybody raves about VirtualDub, but it's beta to say the least.

The best I've found is the AVS package, but that is so CPU intensive that I get jerky video at PAL 720*576 although it does produce decent quality avi files that everything recognises. I have an E6600 processor, 2Gb RAM and an nVidia 9600GS so it ought not be the PC.

If anyone can recommend the right software and the right output settings/codecs for video and audio (and where to get it all), I'd be eternally grateful..........and impressed.