OK, i know the feeling

Here goes ....
You have bought a fake. That is why you have problems.
All "easycaps" are counterfeits. They are cheap imitations of "EzCAP"
They are made from cheap parts, come with outdated software, some only work in mono and some don't even have a sound chip in them. There are now counterfeits of the original counterfeits, so it is a real lottery on what it is you are actually purchasing. There are over 40 different manufacturers in China pumping them out by the 1000's and they all look the same and come with the same packaging.
Yours came with Ulead. Unfortunaltely Ulead does not work on Windows 7. It is not supported.
You're right. It is "bottom feeding technoloy" That's because you paid pennies for it. What do you expect?
How much is your time worth? $10 an hour? How many hours have you spent on your easycaps?
You do get what you pay for. If you just want to take the thing out of the box, plug it in and use, pay the bit extra and get an original EzCAP. They come with better software and work great on Windows 7. You will not have any issues.
Search ebay.com For "EzCAP". I would recommend the EzCAP116. It is the latest model.
Alternative software;
Debut - xp/vista/windows 7
http://www.nchsoftware.com/capture/index.htmlDownload from the link on the first paragraph. Open and then click on "device" at the top.