G450 eTV capture comparison

I have been editing my videos since one year from Hi8 sources.
I am capturing @ 352x576 5Mbit/s MPEG-2 IBP via PC-VCR.

I would like to know if there are better ways in terms of quality:
Did anyone ever try to capture:

352x576 I-Frame only
352x576 MJPEG (via third party software like AVI_IO)

and then create a SVCD and watch it in TV?

It is clear to me that recording a video in MJPEG AVI file yelds a
much better quality on the TV monitor. But what happens once the video
goes to TV in SVCD standard?
I do not have a DVD so I cannot check it by myself. If anyone has ever
checked this, I would be glad to know.

Thanks!