I normally capture everything in AVI format to maximize the potential source video quality using the RCA audio/video, S-video, or DV/firewire ports. I do all my capturing with Pinnacle software and all my video editing with PD12. I tried using PowerDirector to capture using the Moviebox HD, but it never worked properly – so I use the software that came with the MBHD. For several years, I have been happily using a USB-connected Pinnacle Studio Moviebox HD (510-USB) with Pinnacle Studio 14 software to do all my video captures from VHS, Hi8 camcorder, etc.