NERO 7 capturing video error

Just bought Nero version 7 …because it encodes into mpeg 4 format …however everything else works …but when I click on capture video to encode …it "encounters an error and has to close " I reinstalled and this problem is still hapening…is there something I am doing wrong??

I use an old capturing device "dazzel 150 " to capute video from my vcr or dvd than would use NERO TO BURN …but I want to capture from Nero like it says it does using my dazzle capturing device…not the actual software because it encodes in MPEG 2 format “oldschool” lol

anyhelp would be greatly accepted