That's to bad. I don't know if it's the cable or the Pinnacle Video Transfer but when I recorded with s-video (even when I tested it without plugging in the yellow rca cable) the video comes out significantly worse than rca. The worst part is that when recording from s-video, certain parts of the recording will skip kinda and the audio will end up very desynced. :/ Maybe I should try a different RCA+S-Video cable, but I already wasted 10 bucks on this one.
Edit: When I record from a TV with video out or use spitters I don't get any desync so I know it's not the pinnacle.
Hm. I know it's late to reply, but, for the record, I haven't heard of that problem, or if there's desynching then it's usually due to a slower computer.
But - sorry about this - I just realized you said Pinnacle Video Transfer, and while I'm not familiar with that device, that device looks like it... overall has poor picture quality, and possible problems with receiving interlaced video (which is what it seems it's set up for in the first place).
Instinct says not to trust the device on this one, since it will be receiving and encoding your files for you, and not just simply transferring them to the pc. However, even with this knowledge it's not like I could foresee any problems - I still would have given you the same device, but maybe with a disclaimer like "but I'm not sure how well your device will perform, let me know if you have trouble with it."
Anyway, figured I might as well say it..