This post is for the other dummies like me.
Problem: Capture the live feed from DC cam (Sony) with Studio 12
Irritation: Studio kept sending a play command to the camera and playing my tape.
Solution: Remove the tape from the camera :|
This did not occur to me until after many hours of reading posts and fiddling with the software. The solution is not perfect, as the start-up will loose 70-100 frames while Studio recovers from the bad play command and starts to capture. This allows me to dub from my old 8mm tapes to the computer and use the DV as the D/A device. This process produces slightly higher quality than my old DC-10plus PCI card. I use Studio to make MPEG-2 (DVD) files and transfer to Taiyo Yuden brand DVD. This is my personal choice as good enough. It is very easy to spend more time converting old tapes than any human will spend watching the videos in the next 50 years.