I have installed Hauppauge WINTV card which is separate from the graphics card. It fits in to any PCI slot this then connects to my outside aerial. The installation is easy and is supplied with an installation guide.
This system enables me to watch TV on the computer, it also has facilities to record TV programmes and like a VCR you can schedule the date,times and programmes you wish to record. This is then kept on your HD usually filed in My Videos.
Depending on how long the programme is you can burn them on CDR or RW(You need a cd writer) or DVD-/+R or RW.(You need a DVD writer)
You will obviously need a burning programme I use Nero and another programme that I use to convert files is TMPGEnc DVD Author.
The Hauppauge WINTV system I got cost about £35 and works OK but there are other programmes which cost more.
Teddy -Yes to your last question. Be warned it uses up a lot of disk space.
XIE - Thanks for the suggestion. I tried several firmware flashes. It turns out the Lite-on I had must have been defective. I sent the blanks to a buddy with the same lite-on, same same firmware and same MB and they work fine for him. Unfortunately I could not exchange it because I had already clipped the UPC for a rebate. So I am currently loking again.