Seems to me these are two different questions. I don't know if my experience can answer either, but here goes.
I have Studio 8, and I do make one hour movies on occasion, so it obviously can. Whether my ability to do so is down to the computer, not just Studio 8 I don't know.
As for capture, I was limited to 17 mins 55 secs when my hard drive was FAT32, as that was how much video I could get for 4 gig, which is the max file size under FAT32. Now my hard drive usues NTFS and I have no file size limit and can capture any amount of video. I have winXP, whether you can use NTFS with any other operating system I don't know for sure but I think you have to have 2000, NT or XP.
Does that help?
Win XP, Athlon 1.8, G force 3 T, 1 60gig drive + 1 250 gig, Pinnacle Studio 9 plus mostly, Premiere 6, and Vegas 5 sometimes, Soundforge, Cool Edit.