I own a sony DVD handycam 101E. This camera has USB2 output.
The software Vegas Movie Studio+DVD will not accept the camera output as it will only accept Firewire input.
How can I get around this problem?
it's my understanding that USB, even USB2 is not a good solution for DV transfer due to how USB shares the wire bandwidth from the host controller and any other potential devices you connect to your system may hog the wire or induce brief data transfer stalls.
Firewire is really the way to go... that means you'll need to buy a Plug-in Firewire PCI adapter.
They are not expensive, just make sure it's OHCI compliant.
Take the DVD out of your camcorder and put it in your computer's DVD drive. In Vegas Studio use the File / Import / Import from DVD camcorder disc function.