I use an All In Wonder card myself. I heard the TV Wonder can be a pain to get it to work, even if using an ATI video card. Not verified as such, but I've heard it over the years.
There is plenty of free software that may do a better job of capturing the video. There are reasons why you might not get a good capture with stock software.
Virtual Dub is good for capturing and it's free.
TMPGEnc is good for converting to MPEG and the free version should get you what you need for VCD.
VCD Easy V.115 is the free version that's really good for burning the CDs. I could never get either Roxio or Nero to do it. VCD Easy works just fine. Go to this German site for the free version. The software is English.
http://www.pc-magazin.de/datatip/com...66&fileid=2245
You might have to scroung the web a bit to learn to work the programs. The first time, it's a bit overwhelming. But it's actually fairly easy.