the ATI TV wonder is actually a specific card that is like all the other winfast and other PCI cards.
it does have the function that your AIW will do, but it works in conjucnction with any graphics card
there is a USB version as well i think, something about macs as well if i recall correctty!
I personally have a winfast PVR 2000 which has hardware encoding to PAL mpeg which is quite good. you can get a lot cheaper though if you dont want hardware encoding.