The miniDV (SD) Capture should show fine in the Capture window. HD Capture will not, unless one uses a capture program, like HDVSplit.
As a test, can you do a brief Capture with Windows Movie Maker. Do you see the preview there?
Another test would be the trial version of SceneAlyzer Live. Because of better scene detection and a few other extras, many choose it over PE, or PrPro.
If all of the tests show the preview, then there is likely a setting in PE, that is wrong.
Video card driver updates was the answer -- thank you!
Gotta love the easy solutions!