Laser to DivX

On hardware end, you need these:

-GOOD QUALITY capture card for your PC (**it, you have almost-excellent quality videos and you probably don't want to lose quality because of this)
-LD player that doesn't send out MacroVision _OR_ capture card (or card's drivers) that don't care about MacroVision copy protection (it's the crap that all the VHS tapes/DVDs/LDs you rent or buy have and why you can't copy them easily to other VHS player without tricks)
-nice, decent amount of free HDD space (gigabytes..)

Then you need to just capture the video using some good capture software like AVI_IO -- we have guide for this one in here:

http://www.afterdawn.com/articles/archive/musicvideo_guide_part_1_capture.cfm

...after this you need to use VirtualDub and DivX 4.xx codec in order to modify the video (delace, inverse telecine, possible cropping, etc) and finally encode it (use 2-pass encoding). Some instructions -- these don't work 1:1 for you, because they are related to DVDs and aspect ratio stuff, etc doesn't apply -- can be found from our DVD2DivX guide:

http://www.afterdawn.com/articles/archive/dvd2divx_anamorphic.cfm

 

Ok, didn't totally understand what you were saying.. I assume you tried to capture the LD movie using your ATI card? And the result was b/w picture?

Try to switch between NTSC and PAL and see if this helps. If not, then you probably have Macrovision problem or you are using wrong kind of cable to bring the video in to your card from LD.