You need install this Registry Click Here and Reboot for it to take effect.

1. Install the WinTV PVR-PCI II, then verify the TV application functions ok. (Intervideo Software decoders Required).

2. Copy graphedit.exe, proppage.dll to (c:\Windows\system or system32) and register using regsvr32.exe "regsvr32 proppage.dll"
make shortcut for GraphEdit.
Click here for DirectX 9 GraphEdit

3. Open Graphedt.exe, then select Graph> Insert Filters.

4. Under “Audio Renderers” insert the following
a) Default DirectSound Device.

5. Under “DirectShow Filters” insert the following
a) Intervideo Audio Decoder.
b) Intervideo Video Decoder.
c) MPEG-2 Demultiplexter.
d) Line 21 Decoder or Line 21 Decoder 2.
e) Overlay Mixer or Overlay Mixer 2.
g) Video Renderer or Video Mixing Renderer 9.

6. Under “WDM Streaming Capture Devices” insert the following
a) Hauppauge WinTV PVR PCI II Capture.

7. Under “WDM Streaming Crossbar Devices” insert the following
a) Hauppauge WinTV PVR PCI II Crossbar.

8. Under ‘WDM Streaming TV Audio Devices” insert the following
a) Hauppauge WinTV PVR PCI II TvAudio.

9. Under ‘WDM Streaming TV Tuner Devices” insert the following
a) Hauppauge WinTV PVR PCI II TV Tuner.

This is 2nd option way of making used of the encoder
10. Under ‘WDM Streaming Multiplexer Devices” insert the following
a) Hauppauge WinTV PVR PCI II Encoder.

(Do not connect the ‘MPEG-2 Demultiplexter’, it still has to be configured) 

11. Right click on the ‘MPEG-2 Demultiplexter’ and select ‘Filter Properties’.
a) On the ‘Output Pins’ create a ‘New Output Pin’ name “Audio”, then set the ‘Media Type’ to “MPEG-2 Audio”, select create.
b) Create a ‘New Output Pin’ name “Video”, and then set the ‘Media Type’ to “MPEG-2 Program Video”, select create.
c) Now connect the capture pin from ‘Hauppauge WinTV PVR PCI II Encoder’ to the ‘MPEG-2 Demultiplexter’ (Capture pin to MPEG-2 Stream).

12. Right click on the ‘MPEG-2 Demultiplexter’ and select ‘Filter Properties’
a) Select the ‘Stream_ID’ configuration page.
b) Set the ‘Stream_ID Mappings’ to map stream_id 0xC0 to your ‘Audio’ pin, as “Elementary Stream (A/V Only), then click on the MAP button.
c) Set the ‘Stream_ID Mappings’ to map stream_id 0xE0 to your ‘Video’ pin, as “Elementary Stream (A/V Only), then click on the MAP button.

NOTE: If can't fig it out download this file with the MPEG-2 Demultiplexter ready to go you need add in the other filters.

13. Right click on the ‘Hauppauge WinTV PVR PCI II Crossbar’ and click on Filter Properties and set the crossbar input to ‘Tuner’ or ‘S-video’, then
check the box that says ‘Link related Streams’, then click the apply button.

14. Right click on the ‘Hauppauge WinTV PVR PCI II TV Tuner’ and click on Filter Properties and set the input to ‘Antenna or cable’ then set the
channel number and click the ‘OK or Apply’ button.

15. Right click on the 'Hauppauge WinTV PVR PCI II Capture' and click on Filter Properties click the tab System Properties and check any one of
DVD Stream option.


16. Now connect all pin see below screenshot.

17. Now have to do click on Play the Graph button.

Should look like this below.
You can not use VRM7 which look this below.


VMR9

Multiplexer VMR9

OverLay

Multiplexer OverLay