I purchased (Download) VMS Platinum 8c Saturday and installed it. It indicates "No device attached", although Microsoft Windows Movie Maker sees it and will "capture" it as high def MPEG2. I've rebooted repeatedly. What's weird is that when I attach the ilink cable, a little window pops up showing the orange VMS emblem and the hdr-hc1, but I cannot capture from it (all of the controls are greyed out).

Exactly how are you trying to capture.
VMS (and Vegas Pro) use 2 separate capturing modules.
1 for DV and another for HDV.

Open VMS and have your camcorder in the HDV Playback mode:
First under "Options | Preferences" -> Video Tab uncheck the box for "Use external video application". Save and exit the Preferences screen.

Then "File | Capture Video". A popup box should or may appear asking what type of format DV/HDV.
Select HDV then OK.
The capture window should now be displayed normally to the left of the explorer tab.
If your cam isn't selected and you can't control it then in that capturing window there is a "Prefs" Icon. Click on it and goto the "Device Tab". Then the "Device Dropdown Box", your HDV cam should be listed, select it. Under the General tab there are other settings such as "Scene Detect".
Assign the capture drive & directory to a large NTFS drive if possible.
Ten prey bat N captur a weigh...
That's how mine works using a Sony HC3 HDV cam.

I am embarrassed! I read the directions in help on VMS many times over. Each time I read "Clear the Use external video capture application check box", I read it as check the box, NOT clear the box. Thank you for explaining it in such a way that even a hardhead know-it-all like me could comprehend. Of course that worked!

One final question:The preview window in VMS shows either a taller or narrower picture, although I have expanded it to widescreen, than the viewfinder or swing out screen on the camcorder. Is this right?