Yes, I actually have a WinTV Go card that works great capturing in 640x480. The card has a standard Brooktree chipset, and there are excellent Brooktree drivers that make it work in VirtualDub and other VFW applications.
When you capture with a horizontal resolution of 240 (or lower), it only captures one field. That's why there's no interlacing. When you capture with a horizontal resolution of 480 (or anything over 240), you're getting both fields, which introduces interlacing.
If you just want a quick easy capture method, capturing at 320x240 straight to DivX works great. For the best possible video quality, though, you want to capture at 640x480 into a high-quality format that can handle interlaced input like MJPEG (or if you're really picky, the lossless Huffy format). Then you can process the file with VirtualDub and run it through some sort of deinterlacing filter, then scale it down to the desired size.
Anyway, PM me and I can email you the Brooktree drivers when I get home later tonight.
and afterwards editting in moviemaker!
I guess my real problem is having 3 monitors on separate video cards in the same machine 
