Tom, looking into Compaq's website, I searched for your laptop model... even though I do not know EXACTLY which Armada you have, I can pretty much tell you that the processor on your laptop might not be able to keep up with all the traffic...
I personally use IRIS for video capture, and it is freeware, so might want to give it a shot, as the software that you are using now COULD be part of the issue.
Frames dropped is something that happens normally, and it is not that bad, unless it is a BIG percentage of your capture session. For example I normally capture videos of 1800 frames, and might drop 30-50 frames. But then again, your laptop's processor plays a BIG part on this...
Also, might want to check and make sure you are not running any EXTRA software at the time... (specially unnecessary startup/resident software)
Defragging your HDD could also help a bit...
Take care, and Happy Holidays!
Ivan