Ahh, suck. For something like that, I would have just spent a few extra bucks and gotten either a stand alone video capture card, or a bit more for an older All-In-Wonder (mine's the Radeon 7500 AIW, and it was $125 shipped, older ones are even cheaper). A stand alone card will cost you about $60 - $80 (depending on if you want mono or stereo sound).
Doesn't look like you're gonna find anything that captures directly to mpeg with that device, unless there's some other software out there that will recoginize it as a capture device.
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