DVD AC3 Audio TV-Out Alternatives - Help

[SkierHiker]

I'm just building my first PVR out of an old Dell GX240 and a PVR-350. Upon installing SageTV, I saw that it had the ability to show other video files. I was pleasantly surprised as I can now show my home videos on my TV (or so I thought). Unfortunately, my new camcorder is a JVC model which records directly to DVD/AC3 and the PVR-350 does not support this format. So, sadly I'm looking at possibly having to purchase another output card that does. But before I jump, I thought I would do a little research first (I did not when I bought the 350).

All I want to do is to watch/schedule/record TV, and use the Multimedia features of SageTV (show home videos, photos, music). I'm not interested in watching DVD's as I have a DVD player for this, however I need the capability of watching home 'dvd' movies (MPEG2 and AC3). Quick remote/osd response time is important as I have children who are very impatient.

I will not be connecting my Dell PVR to any computer monitor. It is a black box sitting next to the TV. I use Remote Desktop to access Windows if I need to.

I need the installation to be simple (my wife thinks I spend too much time on these projects to begin with). I probably will keep the 350 for encoding as it is a hassle to send it back.

So I think I'm looking for a good solution for on-board decoding that will work well in Sage and provide me with TV out, recording, AC3 output and possible MP3 (for music?).

I see that the Sigma Designs XCard looks like it has these features but there's a very scary thread about this card being slow and needing connection to a video card. Is this true? Are there other reasonable options (say under $100?).

Any help will be most appreciated.

Thanks and Happy New Year - Mark.