Sound echo and recording S-video in?

[Dk975]

I have a Theater 550 using Omega 3.8.442 and 6.14.10.225 (11/07)drivers. I am trying to record internet video with a feedback from S-video out (from video card) and audio out (from sound card) both going into the purple dongle and to the Theater 550. I am using ArcSoft TotalMedia 3.5 to "tune in" S-video and try to record. However, I am getting sound echo when placing Mozilla on the S-video output. I used to get echo with AIWX800XT and MMC, but the solution was to mute the audio in MMC. The problem is that the audio on TotalMedia controls the system audio, so I can't mute it. Anybody have an idea to what I can do to get rid of the echo.