You have two options for audio in: an external (3.5in - 3.5in) connection from the TV card's line out to the Iyonix's line in; or an internal connection to one of the Iyonix's mixers (eg AUX2), just like how you connect up your CD audio. You can record from either source using AudioId.
The image cropping means you can drag the TV window off the edge of the screen - in earlier versions the picture would wrap around to the other side.
And there's now a 'save image' button on the toolbar that saves the current frame to a sprite file. You could still take a screenshot of the TV using Paint, but you have to mess about dragging the area you want to capture, and hope that the picture frame isn't halfway through redrawing when the sprite is grabbed.