I bought two of the Radeons, should be here in a couple of weeks. I'll let you know how it goes. Thanks for all of your help/responses.
I know you've just bought the Radeon (and quite honestly, for consumer level video stuff any of the ATI All-In-Wonder cards are top notch) but I did want to recommend one USB product due to its combination of small physical size and excellent quality. The Adaptec GameBridge TV. http://www.adaptec.com/en-US/support/Video/prod/AVC-1410/ I used one of these for awhile with a laptop as a portable video recording station. In short, it was top notch. I was quite happily suprised at the quality of the output files in MPEG-2 format. And if you are editing MPEG-2 files, I'd recommend VideoReDo. It does frame accurate edits on MPEG files and only reencodes the necessary frames at cut points. All other frames are simply copied so you get lossless (and really fast) editing. -hl718