When I try to capture footage, my iSight camera is activated instead of my DV camera. The controls allow me to control the camera (stop, play, etc), but the video on the screen is from my built in iSight camera. Also, when I capture, it captures that (iSight) video. I tried disabling the iSight, but that does not work.
So basically, it sees the camera, but it does not display the footage in the window.
We had same problem. Double check Project Settings>General>Source. If your input device in attached it should show up in the menu and simply clicking on the desired input device should solve your problem.