So you encoded at 29.97 intially then used a IVTC program to alter the frame rate. Are you editing at 29.97 and coverting right before compression? I noticed that cinema craft has a feature to handle this conversion during it's 9 pass compression sequence.

I haven't digitized the first frame yet. I really want to make sure I have the intial setting correct for all the post capture tweaking. I plan on reviewing what corrections everyone else has made and implementing them as needed

So far: (please correct me if needed)

I'm captureing at 4:3 at 29.97fps
Capture size 720 X 486
Lossless quality (roughly 300+k per frame)
Will try s-video & composite to determine best quality (I have noticed everyone saying composite is better)

On the audio side:
Does anyone have any suggestions.
All I want is that doly 2.0 track with basic surround.
I have an optical in & rca ins.
Once captured does the audio maintain it's surround features or is there somthing extra that needs doing?

Thanks