I just tested the simulation on Fedora 9 and it works, and xvidcap is running smoothly! Thanks for the suggestions, Mark.
There is some goofiness with Fedora 9. On both laptops, it would just hang erratically. Sometimes it was just the keyboard, other times just the mouse and trackpad, and other times the whole machine would just lock up. They are both the same make/model (bought at the same time), so it might be a chipset conflict in there somewhere. My next step is to try to get it working on either of those laptops.
Maybe I'm just old fashioned, but I think having a list of user names displayed on the login screen is a security risk. I have no idea why they went with a gdm that doesn't support removing that list of names, but most people seem concerned with being able to add whatever pic they want next to the names. That is my biggest concern with it right now, other than that I think we can transition to Fedora 9 without much of a hassle.
Thanks again!