1t is an awful lot ! Are yiu sure that is what being captured? It took only 20 minutes to capture that? What format are you capturing?

1t should be about 500 hours of standard definition video. (https://www.quora.com/How-many-hours-of-video-can-I-fit-into-a-1-terabyte-HDD)

If the amount cqaptured is a lot less than 1t, then. Since that version of PD7 came with a piece of hardware, it is an OEM (teaser) version. VideoGrabber may have modified or asked
to have that version modified so it would not capture more than it is captuing now (time and/or space). There is no way to tell and no way to upgraqde or update it.

Why don't you download a trial version of PowerDirector (latest version) to see if it will capture more that what your version does now. please come back and let us know. If it doesn't please post the dxdiag.exe evalution of your computer so we can see if there is something that we can spot. .
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BoilerPlate: To posters who ask for help -- it is nice to thank the volunteers who try to answer your questions !
Anything I post unless stated with a reference is my personal opinion.

Stevek,
Sorry for the typeo, it was 1GB and not 1TB, my fingers are not my own. Its just it fails at the same point every time on a number of tapes. I'm inputing from a camera with 8mm tapes, 120. Everything seems to works and it does capture OK, it's just we have not captured the whole tape. Thanks for your input, I will try another version I just thought someone may have an angle on it.
Kind Regards

Since you are using win xp just use the win moviemaker to capture the whole 2 hours without stopping.