I also have a very similar problem. When using the Record,Edit and Save at the start the video imports and displays on the screen, I press record and it records fine saving on my hard drive. When looking at the captured video location the videos are stored with a picture of the image recorded Media File (*.mpg;*.mpeg) and they can be viewed using Windows Media Player. However in the Record, Import, Edit area of the software only the video name shows with the length and where the picture should be I have a blue screen. I can not view the video in the main screen area, this is black and none of the controls work. If I try to export without editing it starts the process then fails at 97%.
The really strange thing is that if I select the record to DVD on the main screen it works fine producing a exact copy on DVD of the Video from the tape.
Can anybody help.