I got this item with an Amiga 500 purchase. I'm not sure what it does. Is it a frame grabber?

It's a color digitiser by Pheonix MicroTechnologies in Australia.

It attaches to the parallel port and on the back it has composite out and chroma - luma in. Plus what looks like a vga port labeled Auto Select.

On the front it has a 3 point switch with R, G, B, and a saturation knob.

The person I bought it from mentioned it cost him several hundred dollars to buy it new.

If it captures frames, where do they go? What is the video out for?

I guess it would have its own software?