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You'll need some form of capture card -- either a dedicated card like the Pinnacle DC10+ or a TV tuner card. WinME has built-in software to do basic video work (Movie Maker) so your set there. Also make sure your hardrive is fast enough -- minimum for any quality is 7200RPM ATA66.
I've never used Movie Maker, so here are some software issues to be mindful of -- working with AVI files (M$ default) can be tricky because of file size limitations. If Movie Maker allows you to, capture in MPEG-1: files sizes are much smaller, and the compression is less taxing on the CPU so you're less likely to have dropped frames.
That's the basics -- any other quesitons or if oyu want specifics, let us know.
-Craig
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