What you see in the capture window is not necessarily representative of what the signal actually looks like. That monitor is designed for viewing content, not for quality control. To be sure you're seeing the signal correctly, it has to come out of PP and onto a calibrated TV.
Having said that, PP captures over FireWire, and doesn't alter the signal at all. It's a straight bit-for-bit copy of the data to the hard drive.
The only way to capture MPEG is if the signal is coming from HDV tape, and even then only because the camera itself recorded it in MPEG. Other than that, PP captures a DV signal.
As far as I know, PPro (both Win and Mac) capture digitised tapes into the DV AVI codec... on Win it is AVI and Mac it is MOV... but the internals are the same
What is your digitising device... and does it come with it's own software?
But, do be aware that the DV AVI codec, at about 13Gig per hour, is as good as it gets for editing
If you do use other software to capture to a compressed format, you lose a great deal of the original picture quality
I hope this old link is still active... Why not edit mpeg http://tangentsoft.net/video/mpeg/edit.html
I have a sony CRT Broadcasting monitor and i tested with composit, BNC and Svideo. They all look the same. Sony CRT what im capturing and adobe premier comes much closer to quality then final cut could.
Stay with DV editing. It is a good codec that edits like butter. Your performance with DV will be much better that an Mpeg based codec.
There is no editing involved. I'm making them a mpeg2 because the client doesnt need 30gig files of home videos. He just wants them digitized. So instead of loosing time of capturing .movs and then compresing them into mpeg2 i wanted to know if i could capture striaght as mpeg2 and call it a day.
You would have to find a third party solution for this.
Of course you could capture DV and batch export all the footage to MPEG2, quick & easy.