bengal:

As in my initial post (configuration 3.), using pass-thru was not the best solution as it was not without its problems: approx. 300 lost frames for 2hrs video content and audio had a constant crackling in the background.

I eventually settled on using the intermediary DV tape (configuration 4.) which did not have the problems with the pass-thru solution and proved to have the best results.

So, in a sense, I'm using my camcorder as a hardware device to perform this operation, and although not crystal clear quality (I think that is due to the tape more than anything), it currently suits my needs with my current configuration.

Thanks for the suggestions. Although a bit pricey, at least I know what price range and possible products to consider if I need to opt for a solution which can give better results.