Barry, thanks for the info, running Vista so Movie Maker doesn't have capture, on an XP machine I tried this and Movie Maker just didn't look as good as PowerDirector, plus it only saved to AVI and not Mpeg 2 if I remember correctly.
I read there is a hack to get the capture ability back in Movie Maker so may look into that. Strange that PD wouldn't be able to do something which seems so obvious. Thanks again.