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I use a system from Pinnacle called Studio Plus. It came at the time with a HW analog card to plug the old type cameras in there. I converted tones of tapes to DVD from the kids, old weddings, etc.... It works well but it's tedious. You have to play each tape and capture. There's no other way around it. Once it's in digital format then you can do any encoding you wish. The source is uncompressed DV [AVI] ao you have no loss in quality. Any stock Hard Drive will capture without any dropped frames so acquisition is fine.
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