To update : I have tried 3 different video capture software and 2 different USB dongles. I have updated video drivers to current. I have run a repair on Roxio. I have tried different VCR's (getting another one today=3rd). I have tried 2 different computers (Windows 7 & 8). I have tried Roxio with AND without the patch update. All with the same results.
1. The issue does happen when I use the Roxio software and dongle,constantly. BUT I can also have a coax cable out into TV (at the same exact time, having dual displays so to speak) I do not get the distortion on the TV, proving it's not the tape.
2. The issue does not happen when i use another video capture software when i use it with Roxio's dongle. This software would only allow me to test a 5 min slot without buying it, so i did it at a spot where it does it using Roxio.
3. This does not happen at all when I use another 3rd party software at all, issuing their USB dongle. Which belongs to someone else, but the audio sounds terrible on theirs.
My next test will be, using my sister's software, and video only capture dongle and my (Roxio) audio capture Dongle and see what I get. I can do this using my sisters software in the settings, it allows me to choose the video and audio input devices. Roxio, won't.
So I have spent a lot of time troubleshooting this, I am lost for lack of more and answers.
Thanks for all your help and input so far..