Not exactly in the same market... but I am currently trying to unload a 1394 based device called the "Pyro A/V Link" which is a price leader for its features.
*WHEN* it works it works great and the capture is of extremely high quality. However, the thing locks up during a capture when you look at it crosseyed. It loses sync with the video VERY easily, for instance, during a scene transition, and almost always loses sync and locks up when you stop and restart the source (like a VCR or camcorder.) I generally have to unplug the device from the PC's firewire port and plug it back in, in order to "release" the capture application at the PC end.
Tentative research about this issue on Google seems to indicate that some motherboards don't like to play well with certain IEEE-1394 devices like the Pyro. And my life is too short and cluttered to replace my friggin' motherboard just for one peripheral's sake.
I don't know if Firewire is the culprit, or if it's just this device. But I am ready to retrench and try a USB-2 solution. I will be interested to see what someone has to say.