I would spring for a few extra dollars if the laptop does not have TV-out on it rather than trying to deal with the breakout box outputting the video. I'd be suprised if it didn't have tv-out anyway, as even my pIII-667 gateway laptop has tv-out. Rca instead of s-vid, but with a 2mb card, who's complaining?
There is a wide variety of devices for capturing video from analog sources, more all the time. Firewire is more common in the video industry thanks to features like deck control when capturing, but usb 2.0 is a touch faster, and since her camera is not firewire controllable anyway, don't worry about it...unless she's considering a new camera in the very near future.
I'm not suggesting them, even though I've had no issues with their products or service, so glance at tigerdirect.com and look at the video cards, subcategory video capture. It will at least give you some ideas, but please stick with USB2.0 or firewire, usb 1 will not give satisfactory results. Also remember that when getting the capture device, it's tempting to buy on the cheap, but you generally get what you pay for...
Then do a little research on the capture device manufacturer's website to see the minimum hardware requirements for capture.
My Matrox rt.x100 capture board is PCI seperate from the agp geforceTI4800, so even though it requires a decent video card in the specs (geforce4TI is NOT in the Matrox compatibility list, but I built my editing system out of higher end, name-brand parts and really did my homework on the hardware...reading product support forums for a week or two just to select the parts), it's really more for the playback support of captured high-res video when editing. (heh.. a 2 hour AVI capture comes in around 40gigs or so, but realize this is a MUCH higher end card clocking in around $1000 US, with specially selected drives that have roughly 4 times faster hard disk transfer speeds than the "plain" workstation in my office.
The capture relies a good deal on your hard drive read/write speeds, and the editing is CPU intensive, but not a real load is on the video card in either scenario.
It sounds like a pain in the booty, but it's worth it for the frustration you may save yourself from in the future to do your homework now.
Wait till you get to the part about making DVD's with those tapes....