I am capturing VHS-C tapes from a VCR with Pinnacle 8.8.17 through the Deluxe blue box to the Pinnacle card I installed in my Dimension 8200.
XP SP1
512 ram
Pinnacle Capture card
GeForce 4 TI 4200 128Ram
2.4 GHz p4
LITE-ON LTR-24102M cr-rw

When I capture I close all programs running, including my antivirus, with EndItAll2 also set performance to best performance under device manager's advance tab. The captured video plays fine if I preview it on my pc with Windows Media Player, etc. or if I record it out to a VHS tape but if I burn to a VCD it shows Blocky covering the entire video. I have totally uninstalled and removed all traces of Pinnacle in device manger, windows explorer, and also removed the Pinnacle capture card in my pc, then reinstalled all and I am still getting these blocks. I have tried other versions of Pinnacle Studio 8. Also uninstalled the drivers for the LITE-ON LTR-24102M cr-rw and updated with the latest drivers. I have done a format a couple of times and that didn't help either. I tried TDK cd-r as well as a cheaper brand cd-rw.
I am wondering even though the video I captured looks fine on my PC and out to VHS, could it be that when I burn as VCD it magnifies the blocky video that I can't see otherwise?
I am capturing as Pinnacle Studio Deluxe Analog and burning as the VCD option right from Studio 8. I also tried saving as an AVI file then burned as VCD with Nero.