I'm running XP-SP3 on my PC and cannot use Video Studio at all for capture, I have not used it for editing or conversion so unfortunately I am not at all familiar with the program. I know nothing of problems with Sky as I don't have it, sorry I can't help with that one! I use AMCap 9.02 which came with the DC60+ driver update, because I am only recording short video's for you tube I don't mind large AVI's. The files I capture are pretty much immaculate as regards percieved video quality, I then use a freeware program called MPEG Streamclip to upscale, deinterlace and compress them with and they look great to my eyes. You can watch my PS3 video's in full screen/HD and see for yourself if you click
here, scroll down and click on one of the video thumb nails, then click on
Watch In HD and go full screen!
A lot of people have trouble with Ulead Video Studio 10 SE/Plus, there are mixed reviews of it, see
here. I would suggest trying out lots of different capture/editing/conversion software until you find something that works on your system and you like.
Here is a good place to start.
