What OS and is the camera recognized by the OS?
Whoops! Of course, should have included that relevent information.
Operating System: Windows XP SP3
And the OS does recognise the camera.
Try turning on the camera before startin PR. Usually it will ask to start PR for editing. There have been reports that the sequence can be relevant, first starting the camera, then starting PR or the other way around. I have not yet seen a fixed pattern in this behavior.
Along Harm's lines, some cameras want a specific order of being turned ON, PrPro being started and also the Capture module being initiated. You might try all combinations, and check each. Take notes, so if you find the right combo for your camera and PrPro, you can always use that scheme.