I've been looking into these. If I'm after a GOOD mpeg capture should I stay away from hardware encoders?

I'll only want to record 1 hour max, and record it onto a vcd, svcd or dvd. I'd want quality similar to a *good* vhs recording, thats all. And i'd want to record tv, video, dvd and tivo stuff.

The Hauppauge PVR 250 is about the only one within my budget. Any ideas?