Ok guys got it going thanks to Ramon from Roxio support team so I thought I would share with you all what he told me to do in case it might help someone else.
Please make sure that you have plugged the audio RCA cables (red
and white) properly to the USB device.
Please try using a different USB port on your Mac and retry opening the Easy VHS
To DVD for Mac application.
If you have tried all USB ports on your Mac and still experience the same issue
when you use the Easy VHS To DVD for Mac application, please trash the Easy VHS
To DVD application then follow the steps below:
Open the Finder
Go to the Menu Bar and open the "Go" menu.
Select the entry: "Go to Folder..."
Enter the path of the Preferences Folder:
Trash the following files:
com.roxio.Roxio-Video-Capture.plist (this may or may not appear)
Reinstall the Easy VHS To DVD for Mac application, restart your Mac, plug the
USB Capture device and then open the Easy VHS To DVD for Mac app. If the message
disappears, this is the time you should plug the cables from the VHS player to
the USB device.
There you guys hope this helps,