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This card uses a conexant CX23881 (23883 in America I think)chip. As far as I can tell from the specsheets it does not do any hardware compression. It has a standard TV tuner (not a digital TV tuner).
The MPeg-4 encoder is just a codec (intervideo)and if you don't like it there will be plenty of others around.
A standard TV card with a decent, modern chip. Vdub will probably not work with it, but almost any directshow based application will.
It will probably capture up to 720x576, maybe even 768x576
So yes, it will do what you want.
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