This is coming from the PC-side of life, so might not have any bearing. In Edit>Preferences>Audio Hardware, check what your Input and Output are set to.
There could also be something with the settings at the system-level, but with a Mac, I will not even hazard a guess.
I looks to me like both the Audio Hardware and System settings are correct.
I wonder if it's a bug with the controller for that camcorder?
And here I thought it'd be easy.
OK, there was a somewhat similar issue with the camera on a Mac's screen and Video capture. Do not recall if this was prior to the forum change, or not. The title was something about "iSight." I do not recall all of the particulars, but that user's Mac would always default to the little Web-cam, when trying to capture from the video camera. I *believe* that there was resolution, but do not remember what they might have been. In just a bit, the Mac-centric comments got way over my PC-head.
A Search of this forum (maybe CS3?) might yield a link. I'll also look for you.
[Edit] Here's one, but not the one that I recall, with plenty of replies.
[Edit 2] Here's the other one.