1) I looked at the elGato EyeTV hybrid and it only seems to have a RG-6 Cable Wire input, no RCA >Video or S-Video inputs. How would I record with that? I must be missing something.
EyetV Hybrid has coax cable, RCA composite video, and S-Video inputs.
2) You and Steve Mullen have provided a lot of help but I'm still learning the ins and out of video >codecs. I understand from Steve's book that for iM09 we need to deinterlace DV using Slipstream. >Is MPEG-2 or h.264 interlaced also. Does iM09 accept h.264 but not MPEG-2? Is that why there is >an advantage to importing as h.264? When an why would I want to convert h.264 to AIC which >seems to have much bigger files? In most cases I plan to export my clips to iM09 and then the >resulting movies to iDVD.
I don't have Steve's book, so you can ask him about anything he is recommending out of the mainstream.
iMovie can handle h.264, and it should be fine in 640x480. However, it is a highly compressed format. Apple Intermediate Codec basically "un-compresses" it into full frames. When you start trying to do long movies, or to do high definition in h.264, or to do effects like slow motion or image stabilization in h.264, you will run into trouble. You will get much better results in AIC.
My best advice. Use h.264, and if you are satisfied, stick with it. You can always go to AIC.
iMovie does not handle MPEG2 except for directly from a list of supported camcorders.