One thing that might help is to go to the System>Hardware>Device Manager in Win7, and look for the IEEE-1394 driver. Try the "Legacy" FW driver, and test. This helped many, where cameras were not being recognized by many applications.
Good luck, and hope that it is just a driver issue.
Thank you both for the great information. It worked!
I reaaly appreciate you taking the time to respond.
Responding with helpful (we hope!) answers is why we are here
Someday, you will be able to "pass it forward" and help someone else
Driver issues with newer OS's can be tough.
I have seen several issues with the Win8 drivers (same thing happened with Win7 drivers), and hope that SP-1 will fix most of those.
If things are now working properly, maybe take a look at this article: http://forums.adobe.com/thread/1058744?tstart=0
Good luck, and happy editing,