My Windows 98 system with ATI allows me to directly capture video as MPEG.

My Windows 2000 notebook with a Dazzle DV PCMCIA Card using ULead VideoStudio captures video in AVI format and then processes it to MPEG. The software has two plug ins, one for direct AVI and the other for MPEG capture. When I set it to MPEG, the software comes up with an error message :

Digital video driver cannot capturte MPEG files.
Failed to captuure.
The capture file is corrupt and cannot be used.
The captured filed will be deleted.

a. How do I get over this? The same Ulead VideoStudio software when installed on my Windows 98 system captures to MPEG directly.
b. Any other freeware tools/utilities that allow me to directlt capture to MPEG instead of AVI ?

Thanks in advance