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The Latency is caused by how most tv cards operate, there are cards that have less latency, its just usually a matter of picking the best one.
Its typically along the same lines as ASIO (An audio interface which bypasses the dsound sub system to prevent high audio latency when recording)
All it requires in the end is software that reads the pure video / audio stream without having to re-encode it.
As for the person who said that it does this to make the quality better, this is not true at all, while it does allow for filter settings to be applied, The pure quality is only limited by the signal recieved.
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