A friend of mine is having a Canopus (A-something-100) external 1394 capture device delivered today. He got it from newegg.com for $279 U.S. , a little more than your Pinnacle refund. There are 8 reviews on newegg -- 7 are 5 stars and 1 is 3 stars. Pretty decent average, I'd say. One of the reviews specifically mentions that it's great for keeping audio sync, even when the source material is old VHS.
I have a Canopus advc100 and am very happy with it. Worht the money, I'd say. The only things you'll miss with Studio are headaches and the dvd authoring. There are plenty of alternatives for dvd authoring software, but you just can't replace the quality of headaches you can get from S8.