Thanks Jehan60188 for replying.

The problem I have is not with Capturing the AVI but when I try to encode the file.

I use Ulead Video Studio 6 and have also tried Pinnacle Studio 8.

I capture my footage (Aprox 20 min i.e. 4GB chunks on Pinnacle but Ulead does it transparently), edit it, apply transitions/menus but when I set these apps for overnight processing converting the footage to DVD. In the morning I find that both applications crash the only way I can hold then from crashing is shrinking the DVD footage to like 1:15 minutes and not being able to use the full capacity of the DVD.

Also I noticed that the temp file it created during this process was around 4 GB when they crash which kind of confirms that the problem is 4GB file limit with Windows ME.

The only solution at this time I feel is to upgrade my system to Windows 2000 or XP which I do not intend to invest in.

Thanks again.