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Try reinstalling PE.
I am having the same problems. Did you ever find a solution. I have a project coming up and dont know what to do. My email is email@example.com if you want to respond back. Thanks!
Have you seen this FAQ, from the set at the top of our forum?
Can you successfully capture using Windows MovieMaker?
Thanks Peter, John, and Steve.
I tried reinstalling PE with no difference. But I think I may have found the culprit. I also have Pinnacle Studio installed on my PC, along with a Pinnacle capture card so that I can capture video from my analog camcorder.
When I first connect my digital camcorder via the firewire, Windows recognizes the Digital Video Device and prompts me to edit the application with Pinnacle Studio, or Take No Action.
I discovered that I can use my digital camcorder and firewire to capture video (and audio) in Pinnacle but not in PE nor in Windows Movie Maker.
If I take out the Pinnacle capture card from my PC, then I can use my digital camcorder and firewire to capture video (and audio) in Pinnacle AND in Windows Movie Maker but not in PE.
So I suspect Pinnacle software is somehow conflicting with PE when I try capturing. Unfortunately, it will probably be a few more months of dual existence on my PC until I get all of my analog video downloaded, but at least I have a work-around for now, and a likely cause. Once my analog video is downloaded, I can remove Pinnacle and hopefully PE will work correctly.
That makes sense, Steve.