the nice thing about the "Theater" in H3 is that you should be able to play in HD, then if you want to capture you can just jump down to 480i when you're viewing and capture in that format...
I always hesitated to capture becuase 1) there's very little chance of something really awesome happening when I'm at the helm,

and b) I didn't want to play in 480i all night just to record. Shouldn't be a problem now...