I decided to format and start over and see if I get anywhere. So I installed WinXP Pro SP2, installed system drivers, updated windows, installed cyberlink decoders, installed gbpvr, and tested.....exact same problem, so i decided to pull out my old avermedia tuner, installed it and had the exact same problem as the hauppauge pvr-500.
I dont know, but given its working for everybody else, I gonna have to put it down to either some problem with your hardware, or with the software you're installing (decoders etc).
Finally fixed it! Stupid ASUS, several months ago I was having issues with this computer booting off a cd, so I upgraded to the latest bios from asus ver. 803. So as a last resort I decided to downgrade the bios to 709 (in between the one that had booting problems and the new one). And now it works! I have no idea what asus did in this new version but i screwed up my pci slots.