To the best of my knowledge, Vegas only captures video over firewire or SDI, so you'd probably want to use whatever capture app that came with the hardware to capture the video, then import it into vegas for trimming and compressing.
If you have access to a DV video camera and firewire, you may be able to use it to convert analog video to DV AVI. Vegas should then be able to capture from that. The trouble is that firewire is becoming scarce too.
"Peter I do have access to a DV video camera and firewire but how would I convert the analog video from that?"
The camera needs to have analog input. It does the conversion to digital and sends it out to the firewire port. It has to be compatible with the analog output of you video player. Composite video connection is common (yellow for video and red plus white for stereo audio).
You say that you purchased the Magix USB converter used in Rescue Your Videotapes but you did not say that you purchased RYVT. Magix Video Easy comes with the RYVT package. So what did you really purchase? Here is the link to the RYVT page on Magix.com. Read all about it and go to the bottom and view the tutorial.
I purchased the red and white usb converter pictured on the RYVT page. When I spoke with MAGIX they said I didn't need the software as I had VP. That's where the problem is. I'll try and get the software from them. Thanks
Thanks John, I'll see where I can get to with the trial version. Grazie, can I come back to you tomorrow on that question as it seems MAGIX and I may have misunderstood each other. I'll clarify what you can and can't do via USB and let you know.