I have the same grabber card as the thread starter.
Using the old bundled software PVR1 (not PVR2, it's buggy)
and encoding to UTVideo is a painless approach.
My normal workflow:
Output Panasonic VCR with TBC ->Winfast card ->PVR1 ->UTVideo -> lossless file ->
Avisynth filtering -> Virtualdub (cutting,trimming) ->UTVideo -> lossless file ->
encoding lossy -> HCenc (for Mpeg2) or MeGui (for x264, xvid /mp4, mkv, etc).
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