I tried uninstalling and re-installing the entire suite - same problem.
OnLocation recognizes the camera, and transmits the camera to the OnLocation screen. I can see the results, but not record.
Assuming you have the camera in the HDV mode, then you're running into a known issue where OnLocation is mistakenly seeing webcams and other devices as supported video sources. The workaround is to disable the webcam. If the list of devices shows anything else other than your camera(s), then you'll need to disable or uninstall those, too. Here's one of several threads on this issue: http://forums.adobe.com/message/3895552