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If you are droping frames there is something wrong. The capture will be at regular play speed. I always use a camcorder to capture, (a designated one). Firewire is my connection of choice.
As for quality, "crap in = crap out" - the better the camera (ie 3ccd) the better the video quality will be. This is especially important when you plan on encoding it, as your video quality will diminish with every conversion. As for transfers once it is on your computer no loss there. \
As for a faster computer, I have editied on a 1.5ghz with 512mb back in the day and although it was slow as shit for editing and encoding it captured perfect.
Hope this helps - I remember back when I started editing video, information was difficult to find quickly.
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