I spoke to the man at Dell who told me that in order to partition my hard drive I need to back up everything I've saved and will lose everythign on the hard drive - meaning that I would have to reinstall absolutely everything - a daunting task and one that I'm not sure if it's necessary or not?

I've defragmented my computer and I've checked that the capture is AVI. In fact I did a test by capturing the video on all three options, including AVI and MPEG, and the pixelating still happened on all of them. The video appears to look fine in the small preview screen, but when I enlarge it to view it on the full size of my screen, the pixelation occurs.

Pinnacle suggested I download a patch, which I will do this evening. What's so annoying is that MovieMaker did a better job of capturing the video, but the featuers aren't as sophisticated as on Pinnacle.

By the way, I think this website is brilliant.