Three Cheers for Outpatient. The suggestion of updating of the drivers from the Kobian Site really helped and it is working a little better in Windows XP now.
But I still am not happy with it and the dealer has disagreed to exchange it for a pinnacle one(Pankaj's suggestion. As of now I am sticking with using Showshifter which is really good as it captures directly to Divx format and also have the pausing feature with a lot more options(revind, forward,etc) and uses far less resources than Mercury software.
Any other software suggestions invited.
