Video Problem: Sony camera assistance urgently needed!

We have a 1 megapixel Sony camera that recordes onto digital tapes. What is strange, is that when a recording is directly linked to the television via composite input then it looks great.

Yet through a USB link, or a TV capture device, the video is an appalling 320*240 resolution. Why is this so? We've spent hours trying to figure it out and yet it doesn't make sense.

Surely digital signals don't degrade?

Its because your TV runs around 320*240, your monitor runs at high resolutions, far higher, and the quality is alot more sharper.. Plus monitors don't have motionblur(what TV's use)

Its normal.