ATI has some ok cards some people like them, and some hate them.
The AIW series is the best out of the bunch IMO. The WinFast cards good but for a good one you will pay over $100 but it's well worth it.
As for software I prefer CCE or TMPGEnc for encoding my VCD/SVCD/DVD's. Use Nero for most burning. For more advanced/features and adding stuff to your SVCD/DVD's I recommend Sonic ReelDVD and VegasVideo.
I would do alot research on the card you choose before getting it.
Good Luck