Two people playing FFXI on one PC simultaneouslyFollow

My wife and I both play FFXI. It used to be sorta nice in our old apartment, where our PC was stuck in the living room, as we'd both be in the same room together while playing. Since moving, however, my wife has been downstairs with the PS2 while I'm upstairs on the PC. It's a little inconvenient, and we'd like to get back to both being in the same room, without relocating either the TV or PC.

Since our PC has a dual monitor setup, I've been thinking that there must be some way for us to both play FFXI on the PC, each on a different monitor. Our first attempt was to use our video card's AV input and TV tuner functionality to play the PS2 copy on the second monitor. That option functions, but it's not an option we're happy with. While I've been satisfied with the appearance of TV shows from the cable input, the PS2 FFXI just looks horrible on the screen. Everything is extremely fuzzy, and normal text is somewhat difficult to read. Additionally, there seems to be about a quarter of a second or so delay between the PS2 and the TV tuner output. Since FFXI isn't an action game, this doesn't make it totally unplayable, but it does make it rather awkward. It also greatly complicates any time-sensitive actions, such as stunning a mob's TP skills or recasting Utsusemi.

The second option was to just run two instances of the PC version of FFXI. Using the Windower, I'm able to run two instances and freely move them to separate monitors. Each is fully functional, and I'm able to log in my account on one and my wife's on the other simultaneously. What I can't figure out is how to control both simultaneously. Anything from the keyboard seems to only go to the active window, an issue I'd already noticed previously. When only running one instance, the controller operates regardless of whether the window is active or not. But with two instances, it controls whichever is active at the moment. To get this option to work, I'd need to be able to at least assign a second keyboard to one instance (primary keyboard could still stay with active window & keep the proper instance active most of the time), and a way to assign each controller to one instance.

Would anyone have any advice on how to get either of these solutions working well? Either reducing the AV delay and improving the picture quality of my TV tuner, or properly assigning controllers and keyboards to simultaneously control two PC instances? I'm running Windows XP and Windower 3.26 on a custom built PC with an ATI All-In-Wonder video/tv card. Any help would be greatly appreciated.

Just to be clear, there is no true TV at all in the setup. There's just the dual-montitor PC. The All-In-Wonder card has cable and A/V inputs and software to allow for essentially having a TV in a window. In the first setup, I had one PC app running on one monitor, and the PS2 displayed on the second monitor via the TV software.

If we had a spare TV and a place in the room to put it, there would've been no problem in the first place, as we could just hook the PS2 up to that directly. In fact, that's actually an option we're considering if we can find a decent cheap TV.

Again, sorry for not being clear enough, but I'm using the inputs of the video card, not any outputs. As for the quality of the card, it's been plenty good enough for what I've needed it for till now. I'd definitely entertain upgrades if it would help solve this particular problem though. Would having seperate video and TV cards help with the appearance and delay problem, or is this just something that's common with TV cards?

Sounds like a nice setup. Just wish I had space and money for a 2nd good TV in the living room. ^^;

Thanks for the suggestions. :-)