Don't know if this driver was mentioned before but here goes.

I was having trouble when capturing at 740 by 480 AVI. It was coming out interlaced and MOTION BLUR would not go away no matter what.
As a matter of fact, 352 by 240 was the max for my AIW 128 PRO if I wanted
NONINTERLACED
NO BLUR

Well, I didnt quit and found on ATI site a WDM driver for the 8500 RADEON version. Said it was for all , not necessarily RADEON and was dated SEPT 2002.

Well, my limited tests so far are coming out great.
Will post more info after more tests....

Here is the link as the V5 driver is HARD TO FIND
http://www.ati.com/support/drivers/winxp/radeonwdm-xp.html