I've used windows movie maker to capture in the past as it does not create pixelation in the output. All of the versions of PD I've owned(5,6,7 and now "8") do not capture digital video well. What a disappointment to see that PD8 has not addressed this. By "pixelation", I mean, every 10 seconds or so, there is a small, but noticeable glitch that looks like digital squares all over the screen. Not a big deal though since there are many ways to capture digital video. It just would have been nice.

The reason I upgraded to PD8 was because of a suggestion on a forum string that suggested to upgrade when having issues. My main issue of the moment at that time was, PD7 all of a sudden decided to not recognize the audio type of the format imported. At least, that's what the properties of the track in the timeline says(select Properites - Audio=Type: Unknown format). I can hear the audio when playing the file(MPEG-2) when it's selected in the "Content" section. This is an MPEG-2 file created from Windows Movie Maker(Version 6.0 Build 6001: Service Pack 1). My machine is a Dell DXP061 with 4 gig ram, 32 bit Vista Ultimate spq, 2.66Ghz, Display adapter, NVIDIA GeForce 7900 GS. I'm using PD8 build 2013.