You will need to disconnect the Webcam. There should be both a driver and probably capture software. You may need to shut these down at bootup, or they might be addressable directly from their interfaces. Either way, they are very likely "hooking" the video camera settings in the OS.
If you have a Mac, then iSight (there are actually two such programs), is probably the culprit, though there might well be a driver loading up too. With a PC, there are dozens of similar programs. The cure is to either Exit from the software, or stop it from loading at bootup.
OK so thanks to the guys above the posted there replies but I finally figured out what the deal was with the capture select issue. Like most video editing software you can change the source that you are capturing from. The problem that was really strange though was that I could still operate the camera through the fire wire (rewind, fast-forward pause, ect.) but the image that it would capture was from the webcam not the camcorder.
After messing with it for a while I found a solution. For those that have a Mac and are running into this problem here is how to go about selecting the correct source for capture. Apparently by default the webcam will automatically start up when you select the capture option.
When you select the capture option you will be presented with this screen start by selecting this video button.
Next you will see this screen select the source button on top.
Next you will need to select your DV Video. Currently in this screen I do not have my camera hooked up so the option is greyed out and not selectable. However when hooked up it will turn black like the Built-in iSight option.
As previously stated by default the iSight camera is selected which is why I kept capturing the webcam and not my camcorder.
Well I hope this helps out to anyone else who has a macbook.
The only issue I have with this is why do they put the option to switch sources in such an obscure place? Other editing programs I've worked with have a button right below or to the side of the play and record buttons that say source. Adobe I love you but could you make CS5 a little bit easier and user friendly?
Thank you for the step-by-step. From other similar threads, I suspected that iSight the default program and was also probably "hooking" the capture. In those threads, no user went through the steps that you did. IIRC, they each just uninstalled iSight. I like your simple solution much better!!!!
Being a PC-guy, I could not offer any more, than I did. At least now, I can point others to your thread.
Glad that you got it sorted, and taught me something new,