All of the solutions offered thus far are viable however you can't rule out the "X" factor, i.e.; system configuration issues and/or conflicts caused by any number of unknowns. The interaction between (seemingly unrelated) programs on your computer **OR** baggage left behind from previous installations, etc., can sometimes cause oddball problems that are very difficult to diagnose in a web board setting. In such cases you'll have to dig deeper or perhaps try something new such as a different playback source device, capture device and/or editing software.
Most of the popular video editing software publishers (including Ulead) offer 30 day trials of their current products. It wouldn't hurt to give Ulead VS9 a try if only to see if your capture situation improves. If so, I believe you would qualify for a discounted upgrade. You can verify this by checking the list of qualified versions at:
http://www.ulead.com/store/vs/upgrade.htm
Beyond that, there are dozens of capture devices available. Some are supplied with Ulead VS7 or VS8 SE while others will bundle editing software from Pinnacle, InterVideo, Roxio, ArcSoft and the like. If you get to the point where you feel you've made every reasonable attempt to troubleshoot your Vivanco/Ulead package, try something different and it's very likely you'll eventually find a combination that works well with your computer.
Plextor's PX-TV100U capture device includes Ulead VideoStudio 8SE and Hauppauge's WinTV PVR USB2 is bundled with Ulead DVD MovieFactory 2. I've had excellent results using both of these with their bundled software as well as VS9.
-Mike