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I know that with my old ATI card I had to download a special patch that would allow me to use Video In. Also have you tried to record the Video in AVI then convert it to SVCD using a 3rd program?
Looking at the specs for the TV Wonder VE, I am fairly sure that it does not support SVCD Recording, and if that is the case then your SOL, the thing is with capture cards is that they support a select few formats, and if you want something different then you are going to have to record in one, and then switch it to another in post.
If you want to go on, and try to get lucky. I am 99% sure that the Geforce is not your problem. The only thing that PS8 or even the ATI software would be using your Geforce for would be for the overlay (or if you had it, TV on your Desktop). You have all the VCRs and such set up right, and it wouldn't matter what VCR you used as long as it was NTSC.
Try and check the Pinnicle site and see if there is an update you need to allow you to use your ATI Card with there software.
If nothing else works, then you can always record in a SUPER high bitrate VCD and transfer it to a SVCD format, annoying? Yes, but its one way to do it.
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