You can use Microsoft MovieMaker in an Windows XP MCE system. Connect your camcorder or VCR to the NVIDIA DualTV tuner card using the SVID1/AUD1 connections on the bracket of the card if you do not also have a set-top box connected, or SVID2/AUD2 connections if you do have a set-top box connected. You may then use MovieMaker to capture, edit, and archive your video.
Technically you can connect a VCR to view live or recorded programs or make instant/timer-based recording on MCE. In this case you need to have an MCE compatible remote/receiver connected and the respective driver loaded in order to complete MCE set-up as if the VCR you are connecting is a set-top box. In this case, however, MCE does not actually control the VCR via the IR blaster. You have to manually set the channel on the VCR.