Error while trying to capture video

[hlast1019]

I am having a problem when trying to capture a video. I tried a video that was half hour in length, well not quite, about 28 minutes roughly. I have the Video Mate TV Gold+ capture/TV tuner card, a very good product. VideoStudio 7 SE DVD, DVD movieFactory 2 SE and Photo Explorer version 8, all were included with the card. I'm running a Dell Dimension 4600 with Windows XP Home, SP 2 with 512 MB or RAM and 2.4 GHz processor. Video card is the Nvidie GeForce 4 MX 440 with AGP8X. Here's the problem.

I tired capturing the video in DVD movie Factory 2, only to have it first bring up an error message, something to the effect of not enough disk space, and that the process had to be captured. I have ample disk space, about 26 GB free. Well I pressed OK and tried the capture again only to have an error reporting window come up and then when I click either send or do not send, it closes.

I had it set on it's default bit rate of 8000 kbps. Should I have lowered the bit rate to 4000 or 600 VBR. I'm copying from VHS tapes, and i have seen discussions in other forums and topics about lowering to 4000 VBR for video tapes. I even shut down all but essential apps to reduce memory usage. Is there something I'm not doing, or doing that I shouldn't. Could someone help me out here. Thanks.