[TheRob]

I don't have Foxtel, so I'm not speaking from experience here, but my understanding is that to get Foxtel through VMC you will connect the Foxtel box via composite or S-Video to your analogue capture card. In general I would expect this process to provide a much less sharp picture than what you would get from a DVD or digital TV within Media Center.

Having said that, if your picture is extrememly fuzzy, then check that you have good quality shielded cables running between the Foxtel box and the PC. This is an analogue signal and thus prone to interference.