No, not correct. As per your other post,
http://www.digitalfaq.com/forum/vcr-...bc-1000-a.html, this unit does not generate them. And to be completely honest, it's not needed. When a signal drops, I'd rather have nothing than color bars.
Any grainy color bar you saw was on the source tapes. Hence the grain.
The ATI 650 is not the best card, as it has an in the color values. It's often too bright, and the IRE is distorted. It was one of ATI's stinkers before they quit making capture cards.
Yes, the ATI All In Wonder cards are better. And it was a consumer card as well -- all ATI cards were. Yet ATI was so good in those early years (and not cheap at $300 per card!), that the cards would outperform pro cards from the likes of Canopus, Matrox and others. And when it comes to capturing VHS sources, and other consumer tape sources, this is still true even now. The ATI AIW cards still hold there own against modern cards like Blackmagic, Aja and others.
DVD-Video = MPEG-2 format. But you can convert to MPEG after capturing to AVI (preferably
Huffyuv lossless AVI), and filtering/restoring the AVI as needed.
The XP computer is ideal for capturing workflows.