Specs:
Win XP
ATI TV Wonder (PCI)
ATI radeon 9700 pro
512 meg of memory
ati 7.9 media center

I have ATI TV Wonder with all drivers installed that came
with it, and then again (with fresh load of PC) with
latest drivers (and at 8.9 media center)

When I run configuration/PC test - it says Direct X is not
installed properly or you need version 9.0 or higher.

I installed Direct X before I did any drivers and then
again after I did the test.

I also installed Direct X patch:
NTSC-J, PAL, and SECAM TV Tuner Hotfix for DirectX 9.0b on
Windows 2000, Windows XP, and Windows Server 2003
(KB825116)
http://www.microsoft.com/downloads/details.aspx
FamilyID=8dfd1b6d-e177-4a0e-91d0-
b4310675b02b&DisplayLang=en

This does not fix the issue of it not finding Direct X.

The problem I am having with the TV Tuner Card is that it
is not capturing (recording) TV shows properly. I can
watch them and everything else works fine but when I
record them and then go back and play recorded video, the
sound is really scratch/static. (media center 7.9)

When I installed Media Center 8.9, I could not watch TV,
the tuner card/application would set sound input to wave
and it was really quiet/static. When I changed it
to "Line In" on the sound/volume controls, I would get an
echo and a severe time lag with sound and video.

I ran setup and selected "Line In" as my sound option, but
still did not work.

If you need more details please ask.

I appreciate any help.

Mine said I didn't have a radeon class video card. Ati will be of absolutely
no help to you. I gave mine to my father because he loves win 98 and so
apparently does this junk card. You can try looking around www.dvdrhelp.com
and www.lordsmurf.com. Lordsmurf is an ATI fanatic so if anything start
there first.