Digital Cam problems with DVC II

[RappWizard]

I cannot seem to create any decent quality VCD's when I use Dazzle Video Creator II to capture footage from my Sony Digital Camcorder and then burn a VCD of those clips using Nero. I can however create pretty decent quality VCD's when capturing directly to Dazzle Video Creator II from my DVD player(music DVD videos for example) and then burn a decent VCD using Nero(Don't have to use TMPGEnc since Dazzle encodes it directly.)
I have spoken to the folks at Dazzle and have not gotten any earth shattering advice(after being on lifetime hold with their technical support). My question here is : Am I better off just capturing in AVI from my Digital Cam into a regular fire wire card( I Link 1394 Card) edit the footage with the accompanying software(Adaptec firewire Card comes with MGI Video Wave) and then encode it with TMPGEnc before burning with Nero. Any advice would be much appreciated. As you can tell I am not a VCD techie and am still learning the basics.

[RappWizard]

Note please diregard my posted message about the problem with the OBDC Drivers and the DVC II software not opening. I solved that problem long ago and apparently it was inadvertently published with my last message. I am however still seeking advice on my problems with creating a decent VCD by capturing footage into my PC from my Digiatl Camcorder. (Hey its either this or go back to my other life in fantasy football. Of course I could spend more quality time with my wife but these hobbies keep me out of trouble.)