Thanks for the quick reply's.
The strange thing is that the picture quality on the MS setup videos pretty decent despite being through S-VHS but live tv is the problem, I have a good outdoor aerial so I know its not that!
Johnnie, your G4MX420 is a dedicated card which unlike mine does not borrow from system ram, that could be the difference because I have only got 512mb ram installed. I also have problems with the tv guide menu's disappearing, apparently because MCE 05 is not compatible with my intergrated graphics.
Basically, I thought instead of buying another 512mb ram I should buy a 6200 which would be more beneficial to video performance, correct me if I'm wrong anyone??
Maybe I should also buy another 512mb of ram as well, what was originally a cheap upgrade has started to become pretty expensive.