Am I correct that the Sony is an analog tape camera, and not Digital 8?
If so, then it will be the Dazzle, that PrE will need to see. Unfortunately, many users have never gotten the Dazzle units to function well. Once, Dazzle was sold by Pinnacle (might still be by Pinnacle's parent company, AVID), and usually bundled with some form of Pinnacle Studio - even when using that, many users never got the Dazzles to work. See the Pinnacle/AVID forums, to see if that has gotten better.
I would do the capture through the Pinnacle/AVID software, if you got that, and Save the captured files to DV-AVI Type II, if the Pinnacle/AVID can do that. Then, Import that into PrE for editing.