I've had the same capture problems, it takes a few minutes at a time, but any significant length of video, it causes an error and cant be opened. I overcame this with the tedious task of cutting the video into little parts. Painful, but it worked.
I did produce a DVD, and found the editing tools a little quirky, but effective. After making a menu and having it all nice and ready to burn, I receive an error that states an inability to transcode. The text message refers to NeAcEnc.dll, or something like that (sorry, not home to get the exact text). The .dll exists, but somehow it doesnt see it. It never even gets to the burn sequence. It wont do it as a simulation either. So I have a produced, ready to burn dvd, but cant transcode. Any ideas out there? Nero hasnt really helped, but I will persist on that end. Updated to 6.011, but no change, even after reinstall.