I'm new to PC video editing. I'm looking for a basic capture card to digitise analog source video to AVI (with some compression) for editing in Adobe Premiere Pro.

Budget is a big limitation. A lot of the cheaper cards specify that they encode to MPEG2 etc but don't say you can capture the digital video into AVI files (such as DV-AVI or huff etc). My question is, can I assume it is possible to capture the digital video from a basic capture card using third party software and save/compress it to AVI files that would be suitable for intensive and frame accurate video editing?

Quality is not too great a concern - the source is Video8 and it will end up on a DVD, I just want something cheapish that will get the job done.

Any help or recommendations would be greatly appreciated.

Thanks!