The ATI AIW carsd are video only. The audio ports all pass through to the audio card in the system.
The ATI AIW card is one of the best analog capture cards out there, so it'd make sense to pair it with an excellent audio card. Lots of cheap cards and onboard sound causes audio distortion. Realize that "name brands" like Creative/SoundBlaster has junk cards, so you need to be careful to get a quality model as well as good brand. The "Turtle Beach Santa Cruz" is my favorite.
Sometimes individual cards are bad, even when the model series is fine.
The only way to test cards is to analyze the waveform of the recorded audio. You're a premium member, so feel free to capture a sample, and I can look at. I do this anytime I setup a system.
FYI: I have 3 very nice capture systems available for sale. These were production systems that I used, and are about as perfect as can be expected.
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