First of all, sorry for the late reply.
Hauppauge is one of the better (IMO) manufacturers of TV tuners/capture devices so it's unfortunate that you're having trouble with their product. I've used Hauppauge's WinTV-HVR-1950 (a model up from yours) when I first started capping and it always worked well for me. No trouble with software updates either. I stopped using my 1950 though in 2010 due to Comcast encrypting cable channels (and recently OTA HD channels in my area as well
making it completely useless to me now).
Silicon Dust is another good option you should take a look at (though they connect through the ethernet port rather than USB). If you want to record off of your DVR, you should consider FishOil's suggestion: Hauppauge HD PVR. Sorry but Hauppauge really is the go-to for most cappers.