Many thanks – that worked just fine and I can now import .avi files direct from my DV camcorder! Amazing what “checking” a box can do. Didn’t realise that there were different capture applications within Vegas. Again, many thanks for your help.
Checked the setting as suggested but the “always start a new project with these settings” isn’t checked. What I find odd is that the on-line tutorial regarding video capture suggests that when I connect a device Vegas should prompt me to select either HDV or DV radio button. This doesn’t happen in my case – just goes straight into a project. My “Vista” PC will capture externally as MPEG type files and I can import these OK into the Vegas timeline but not AVI files directly from the camera.