VirtualVCR lets you choose any codec available to DirectShow. Not all codecs will work though.
All MJPEG codecs I've tried allow you to control quality/bitrate. With good MJPEG codecs at very high bitrates, the average difference of the pixel channel values between the original pixels and after a compression/decompression cycle can be much less than 1, i.e. the vast majority of the pixels are identical. However, at these quality settings, a true lossless codec usually will have a lower bitrate on most scenes.
Getting back to the original question, I think a PCI MPEG-2 encoder card is likely to be the easiest and most reliable, but editing is complicated. A step down in ease , a step up in editability, and about as reliable is something like a Canopus ADVC-100 hooked up to a firewire card. VirtualVCR and an analog video capture card is another step down in ease of use and reliability.