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I need a DVD burner before I can do any of this stuff.
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No, you don't, you can play the MPEG Stream on the PC. The difference in quality will even be easier to distinguish on the monitor than on the TV.
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For simply capturing raw footage to DVD how much longer would it take on my PC than a set top recorder?
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If you do realtime MPEG capturing, it takes the same amount of time.
If you do the non-MPEG capture, well, the capture time is identical. The encoding time varies, depending on the encoder and the settings you use. You can assume about 1.5 to 4 hours for 1 hour of footage. You could let it encode overnight, too.
RJ