Ok I will answer myself since I just got Fin*l Scr*tch 1.54.
To start, it was a pain in the ass to install the software since it has to be registered to operate beyond 14 days. However, once it gets started it works well with Velocity, except that you cannot use delay or flange function. Scratching at low latency setting is flawless. No time lag, it's just like having a cd in the tray. Hot cue works very well. The biggest plus is having all the songs on hard drive. Say goodbye to record crates.
If you are not a fan of St*nton, R*ne also makes a version of this called Ser*to. However, you will pay a premium price and it's only slightly better if you are using vinyl.
So guys, if you are tired of carrying around cd's, this is one option. Now if only American Audio could make a version of this.