I have downloaded drivers+ capture software from osprey.com.

But it only captures in  avi & massive file sizes.

How can I capture in Mpeg (2) suitable for DVD enduse ?

Can anyone help please,?

Captured video at full size and frame rates does tend to be quite large (around 30MB/s uncompressed), hence usually the need for heavy compression using encoders such as Windows Media Encoder or Real Helix Producer.

For realtime MPEG 2 encoding you'll need to obtain either a software MPEG 2 encoder (and a powerful host machine) to use with the Osprey 100, or go for a dedicated hardware MPEG 2 capture solution.

Alternatively, you'll typically end up capturing to AVI first, then converting from AVI to MPEG 2 afterwards. A lot of people will tend to do this conversion using a DVD authoring application, but it can be very time consuming on lower powered machines, and as you have found out, you need a lot of disk space for the initial capture, although disk space is relatively low cost these days.

Dave