Dave, the Dell OEM version of EMC 10 has any video editing features.
At least it didn't.Instead of using Capture from Video Wave, try Media Import; does it see your camcorder?
It is possible that the Vista update did the damage.
In deed, try the update. I would have expected that you would have done that already since the program usually bugs you to do the update unless you have that turned off. If that doesn't work, see if there is a repair function in EMC 10; I don't have that loaded and I don't remember if it is there.
You might also look for a Windows restore point before the end of July.
Do the clean install if nothing else works. Follow it closely.
The last resort would be to do the clean install.