And yes I RTFM but mostly nothing happens at all when I hit the "Capture" button - sometimes I do get a Program couldn't start/initiate but mostly nothing happens at all. Pinnacle and WINXP Capture works just fine.
//Garo
Have you tried running VidCap separately from Vegas? I almost never click the capture button in Vegas. I almost always run it independantly. Look in C:\Program Files\Sonic Foundry\Vegas 4.0\ for a program named vidcap40.exe (or 3.0 and 30 if you're still using Vegas 3). Try running this program directly. I placed a shortcut for it in my Start menu for easy access.
Pinnacle, and dazzle products for that matter have a way of infecting your system causing pretty much nothing to work that relates to video. I agree, get rid of everything that relates to any Pinnacle programs you have and you should be fine, at worst you will have to reformat and re-install your OS.