True, but how many shows can you record at one time? I would assume the hard drive is big enough to copy several shows, rather than a single 2-hour movie at high quality. That would not be smart engineering. What is the make and model of your unit?
[EDIT] Oops, perhaps what you mean by "disk capacity" is the DVD capacity, in which case it must be limited to 4.7 GB regardless of the hard drive size. I keep thinking in terms of a capture that you can offload to computer (Hey, I didn't get much sleep last night.

Well, then...it's between choices 1 and 2. Which one are you going to try?