sexy technical people use virtualdub. also, never ever use capture software that comes with the capture cards they are always trash. virtualdub virtualdub virtualdub
but yeh, video stuff is kinda my fetish, i might be able to help lol.
in terms of actual hardware there's not really a lot for under $150 that I would personally consider "above average audio/video quality". easycaps are cheap and good value for money but if you are actually concerned about quality then avoid them as they will give you eye cancer (also they do capture PAL I dont know what toki is on about, not the point though).
Anyway, in terms of quality, the best device I have experience with in your price range is the Hauppauge USB Live-2. It might not be suitable just cause it can't record PAL in colour, but if that doesn't bother you then I highly reccommend it. Real good drivers and pretty much any program will detect it as a video source, and you should be able to find it in the $100-120 range on ebay (incl. shipping) fairly easily. It's a bit tricky to set up but I can help with that lol.
If the PAL thing bothers you then you should probably look at a Dazzle, I don't personally have experience with them but I have heard good things, plus like everyone uses them so support is abundant.
As a side note, the Pinnacle Video Transfer (yes it is actually called that) might interest you just because it so incredibly convenient to use, it's way out of your price range though (ebay says $230+ atm).