I have captured a couple of movies with mine and they looked pretty good on DVD. I have tried using a USB flash device that you put in your own SD memory. I used a class 4 chip, which did the job, so if you have a fast enough drive it should work. You can test this setup yourself to see if the quality suits you. Anything is better than nothing when it comes to backup.
There are two draw backs to this setup. First, the Pinnacle Video Transfer requires 5v DC to operate, which is supplied by an AC adapter (this could be overcome with a little ingenuity). Second, Liquid does not handle the H.264 format, so you will have to have another program to convert to a format that Liquid handles. I use Studio 12 for this purpose (I'm sure versions 11 on up work) and there are many more that can do the job.