The sales person told me that it will record in MPEG2 and make DVD from it. It encodes MPEG2 640X480, and audio only at 32kbps. I guees I did not research it. Any ideas? Any converters that will convert 640X480 video,32khps to 480X480video and 44kh audio? Thanks in advance.

Yes you definately should have researched this Product, what you will have to do is Re-encode the File you capture with Creative the Proper Resolution, But re-encodeing Mpeg file will greatly reduce the Quality of the File Cuz Mpeg is a Lossy Format so every time you encode a Mpeg file you loose More Quality, But yes there are encoders that will encode it to SVCD resolutions and specifications..The Best way to do it without Spending Much money would be to Use DVD2AVI to Make a D2V frameserver file and De-Mux the audio, then load the D2V file and the Audio file into "Tmpgenc" and encode it to a SVCD Compliant Format...DVD2AVi is freeware and Tmpgenc is Shareware and a 30 day trial can be downloaded at "www.tmpgenc.net/"

Thanks lui, let me try your suggestions.