Arcsoft Showbiz DVD 2

I have bought an AVL Labs product AVL681B DVD Video Maker.

It’s a dongle that plugs into a USB Port and accepts input from camcorders etc. The idea being to copy video tapes to hard disk, burn to DVD etc.

The Arcsoft Showbiz DVD2 software that came with it on the driver CD seems to work okay and using Capture, plays video from the camcorder just fine - audio is fine too. Even the single frame snapshot works, it writes a single frame JPEG still, to the hard disk perfectly.

Problem? When I click on the screen “Record Button” a message tells me that it cannot find a video source! And yet… video/audio are being read and displayed.

Any ideas? Supplier wants the device (the dongle) returned for replacement - but it looks more of a software problem to me and my inclination is to reload drivers etc. from the supplied CD.

PC is running XP Home and camcorder is an old Sony Video 8 that works just fine - plays when connected to TV etc.