I don't post or contribute much, but since I solved my problem I would like to share it with others who may have the same problem since I have seen it posted before.
When using MMC I could capture without basically dropping a frame. Try in
VirtualDub and no matter what I did it would drop 15-20% of the frames consistently.
After a lot of reading and troubleshooting I came across a post mentioning turning off audio playback during capture. Sure enough that fixed my issue right up.
So for other who may have trouble with lots of dropped frames, try capturing without audio playback enabled and that may help.