Make sure that you have the correct inputs selected in beyond tv. It may be recording off of a different input that doesn't actually cary the tv sound. As for the delay itself, I think beyond tv should let you turn off time shifting, which is why the delay is there- it is constantly recording so that you can pause, rewind and ff just like a tivo.
Btw- what do you mean by "it doesn't utilize my widescreen lcd?" If the resolution is the problem, its not going to be fixed in any way, and if the aspect ratio is the problem, the sofware can't help it either, unless it would know where to crop the picture to get taht ratio, or it stretched the picture. Its still a normal tv signal coming into the computer, remember. It may actually look worse than on a normal tv because of the higher quality dispay. It shows all defects.