1. That depends on which video codec the Canopus uses, if it is different to the one you are using on your video capturing software (not what the camcorder uses, as it goes through the circuitry instead). If the Canopus uses DV AVI then it is the same as your capture software, although you can change it but DV AVI is the highest standard definiton format you should use everytime.
2. About 50% loss between using S-Video and composite, S-Video has around 470 lines of resolution whereas composite video has around 230. This has got nothing to do with the 625 lines on a standard tv.
3. I've used earlier versions of Pinnacle but stopped as I had problems with it aswell. Download a few 30 day trials of editors such as Adobe Premiere Elements or the more expensive Adobe Premiere Pro (Elements is on sale for about £65 - and will do all you need to get video onto your computer, allow you to edit it and make dvd's). Also look at Sony Vegas but again it is more expensive. Other video editors are listed here on the forum so look them up aswell.
4. Store your files as .avi video files.
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