I've got a Hauppauge PVR 2 USB card as my video capture card, and it's working well. However, I've got analog cable that requires a set-top box to decode it. This means that I have to split the signal after it comes out of the cable box, and thus I can only watch on my TV the same thing I'm recording with my computer. What I'm looking for is a software analog cable descrambler. Does such a thing exist?
I don't believe such a thing exists, but my cable company allows me to get as many boxes as I want...so that's always an option. I'm not sure how MCE handles encoded signals. I think the driver for your cap card should do it.