I have Nero 220.127.116.11 & Nero Digital 18.104.22.168 . I run StartSmart, select DVD, point to Photo & Video, click Capture Video (which starts NeroVision Express 3), then set the Capture Device pulldown to Microsoft DV Camera & VCR.
Alternatively, I can run Sonic MyDVD 3.5 (build 52902), click the Capture button, then under Record Settings click Change, and set the Device pulldown to Microsoft DV Camera & VCR.
But MyDVD isn't quite as stable for me as NeroVision Express. At the end of a capture session, MyDVD will lock up ~50% of the time. Nero maybe only 15%.