I can't fix it either since its an artifact of "how things work". You could use VIRTUAL DUB to remove that line but since it's documented how to do that I won't tell you the steps.
I purchased the ALL-IN-WONDER 9600 video card to capture video from tapes to burn on DVD. On capture using Pinnacle Studio 8 (that came with the card) or Ulead I get a flashing white line across the top of the screen that is also on the burned DVD. ATI say they can't help me because I don't use their software, which is only for burning DVDs, not editing. I'm using a new E MACHINE T 3092 with 512 ram- 160 gig hd