First thing we need to do is make sure that your Dazzle drivers are up to date.
Complete driver removal.
1. Click the “Pearl” (Vista Start button) and type Device Manager on the search box and press Enter
or
press the Windows button + Pause on your keyboard and click Device
manager on the System properties screen. (Figure 1: System Properties.)
2. Click the “+” sign for the Sound, video and game controllers
3. Right-Click on "Dazzle DVC170" and choose "uninstall”
4. Close the device manager
5. Unplug your Dazzle device from the USB Port
6. Click Start and click Computer
7. Browse to “C:\Program Files\Pinnacle\Shared Files\Drivers”
8. Delete all instances of DVC 130_170 folders, compressed files and drivers
Updating Drivers to the latest one.
1. Download the latest driver from drivers download page.
2. Install the driver pack
3. Reboot the computer
4. Connect the Dazzle Device.
5. Repeat the driver version verification steps above.
6. If the driver is up to date, you should be able to capture with Studio and/or Instant DVD Recorder.
After completely removing and installing the latest DVC 170 driver. Lets try to test the DVC 170 to see if it works fine.
1. Disconnect all splitters from the Dazzle.
2. Set you Xbox to Run in Pal 60Hz, (if you are using an NTSC Xbox 360, ignore this step)
3. Make sure that the Xbox AV cable is set to "TV" and not "HDTV".
4. Plug the RCA(Yellow, Red and White) directly to your Dazzle.
5. While you have those connections, reboot the computer and reboot your Xbox 360.
6. After the reboot launch Studio 10.8 and go to capture and select DVC 170 in Capture settings.
7. By now you should have your Dashboard seen on the capture preview.
If for some reason you are still seeing a black screen, try to lower the quality of the capture to medium. Laptops are very picky with this device as the DVC 170 is very power hungry, it sucks your USB ports dry and it may have problems sharing with other devices, there are even some occassions that the device would seem to not work by using it on its own. The reason for this is that the laptop may have underpowered usb ports. What you can do to resolve this is to switch to maximum performance and keep your laptop plugged on the wall as you capture. If you still get problems after that you want to look in to either using it on desktop computer or purchasing a ac powered usb hub to feed it the power that it needs.
Let me know how it turns out.