Hi Mike,
DAO stands for Data Access Object and it's a component which MMC requires. I suggest you uninstall all the previous ATI multimedia applications you have and download the latest MMC and all its required components from our website:
https://support.ati.com/
From the left-hand menu click the following:
Drivers and Software -> Windows XP -> TV Tuners -> TV Wonder Pro/TV Wonder Pro Remote Control Edition
Then on the right side of the screen click on the link "TV Wonder PRO Windows XP Drivers and Software". Install all 4 components that are listed there in the order that's listed there. Then you should be able to record just using MMC (which stands for Multimedia Center BTW). When you're in MMC just choose Composite as the video input. Let me know if that works out.