Finally got some time to play... and I got it nailed!
Turns out my wife had the MSIE "discussion" feature turned on for her webpage explorations and that would cause WIndowsupdate to freak out and pretty much not work. A few minutes of tracking that down brought her system up to par Windows 2000 wise--including directx9
Then a trip to ATI turned up the fact that the current drivers for her AIW RADEON card ( Like a 7500 AIW) were ancient...not even "Catalyst" version, so.... had a few difficulties with the install, but managed to manually install the updated Catalyst drivers, new WDM, and MMC drivers ( multi media) stuff too. About 1000 reboots later, I was ready to give it a shot.
Fired up WME 9, set up the inputs and voila' very good looking input and output, so then I fired up the 4155 and AAAAACCKKKK! first thing I saw was Saddam's scummy looking "before the Extreme Makeover" picture! Scary.. but it worked as advertised. I did have to pump up the brightness to max to make it easier to watch in my environment, but, I had it up and running....
the best part? My wife ( who is fairly techie geeklike in her own right) says: "Hey..that's cool, how'd you do that?"
I need spare batteries now.. AND a way to change channels.

Hmm.. I see an X10 interface and IR blaster of some sort in my future....
If you have an AIW, I heartily suggest upgrading to: DirectX9b, the Latest Catalyst drivers and MMC 8.7. That should do the trick for you!
Good Luck!