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I guess the latency (the delay) is caused by the software and if it isn't then it's the card. Right now I'm using a very cheap tv tuner and I can play my Ps2 without delays in my monitor.
Try Dscaler instead of the software that came with your card and come back.
As for recording, you should have a card that has hardware encoding and a good processsor so you can encode at real time without lost frames.
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