Regarding your issue, here is what you need to do in order to setup the VC500CXT device:

1) Plug the VC500CXT device into an available USB port on the back of your computer. A blue LED light should turn on for the device, indicating that the unit is receiving power.

2) In Device Manager, our device will initially show up as "OTG102" under "Sound, Video, and Game Controllers", or "Other Devices" before drivers are installed. Load the installation disc into your computer and open the "AutoRun" option from the Window that pops up on your screen.

3) On the menu that appears, click on the option that says "Install Driver" to install the drivers for our VC500CXT device. Follow the instructions on the screen to install the drivers with the device still plugged in. Once installed, the device should detect under "Sound, Video, and Game Controllers" as "USB2.0 Video Capture Device" and "USB2.0 Audio Capture Device".

4) Return to the "AutoRun" menu and run the "Install Software" option to load the EZ Grabber and the Dynno file uploader applications. Follow the instructions on the screen to install the software.

5) Return to the "AutoRun" menu and run the "Showbiz" option to install the Arcsoft ShowBiz DVD editor and burner application. Follow the instructions on the screen and when prompted to enter a user name and a license key, enter your name followed by the serial number located on a sticker on the back of the envelope below the Arcsoft logo where the installation disc was kept in.

6) Connect the yellow composite video cable, or the S-video cable, to the back of your analog source (TV, VCR, DVD player, camcorder, or game console system) along with the red and white cables for composite audio. If you are missing one of the audio ports on your analog source, leave the missing composite audio cable disconnected. Plug the other end of the cables to the VC500CXT device.

7) Open the "EZ Grabber" program on your desktop and click on the "Setup" yellow gear icon on the toolbar that opens with the preview screen. You will need to make the following changes in this menu:

a) Under the "Video" tab, if the format is set to "PAL", switch it to "NTSC_M" and verify that the source is set correctly to either "Composite" or "S-Video", depending on the cables you are using with your analog source.

b) On the "Capture Button" tab, if you want to use the button to record video to your computer, switch it to "Capture Video".

After these changes have been made, click "OK" to save the changes.

8) Start playing from your analog source and the preview screen should start showing video and audio on your monitor. If you see and hear this, you can either hit the black "REC" button on our VC500CXT device, or press the Red Circle button on the toolbar, to begin capturing the video content onto your computer from your source. If you pressed the "REC" button, then a red blinking LED will light up on the device to indicate that it is capturing.
 
9) Once you want to stop capturing, either press the "REC" button again, or press the red square button on the toolbar, to stop capturing. Once you stop capturing, the blinking LED will go out, but you will need to physically stop or pause the analog source if you want to continue from where you left off to capture something else as this device will NOT automatically stop your analog source.

A video file will output to the default directory "My Videos" or "Public Videos" on your hard drive. They file name specified is based on a date-time format. You can rename the file if necessary for easier recognition.

10) Once the video has been captured onto your computer, open the Arcsoft ShowBiz program located on your desktop.

11) The program opens to the "Edit" tab by default. Below the Edit tab and the "Text" button, there is a button with a green arrow on top of a folder called "Open". Press this button to load video files into the "Library" directly below the Open button.

12) On the window that pops up on your screen, locate the directory where your captured videos are located and, after selecting each video, click the "Open" button in the lower right hand corner of the "Open" window.

13) Your video clips will show up in the "Library" section directly below the "Open" button of the Arcsoft ShowBiz program. Click and hold down the mouse to drag and drop the video clips onto the "Storyboard" section located below the "Library" to add those clips to the DVD. Also, you can right-click on the active video clip that has the red square on it and select the option "Add to Storyboard" from the context menu to add your clip to the project.

14) When you are ready to burn to DVD, click on the "Produce" tab and select the option to "Create DVD". You will need to save the project when you click on the "Create DVD" option before you can continue with the DVD burning process.

(If you want to upload the video clip to YouTube, click on the "Upload to YouTube" button to start this process.)

15) A program called "Arcsoft TotalMedia Studio" will open up on your computer. To simply burn the video clip to DVD, go to the "Produce" tab in this window and check off the box that says "Create a disc without a menu". Once you have a blank DVD loaded into your DVD burner, click on the "Burn" button and the process will begin to burn the video clips to DVD format.

Let us know if you have any other questions or problems with the capturing and burning process.