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Is "My Video.mpg" the most raw highest quality?



I have an old Roxio video capture stick (with the Easy VHS to DVD Plus software) and have a question regarding the output files.

When I play my VCR and click the red record button, it creates a mpg file called "My Video.mpg" in a directory called "Captured Videos".

I then have the option to edit or enhance the video and pick highest quality and then export it to a mpg again and the final file will be located in a directory called "COMPUTER".

Isn't the captured file "My Video.mpg" in the directory called "Captured Videos", the highest quality version of the video? (ie. the version in its rawest untainted form?). Once I start playing around with the original "My Video.mpg" and then export it to another version, doesn't it degrade the quality?


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