DV Info Net - Video Capture settings Changed??

Sony Vegas Pro 8
New problem now when trying to capture video from a camcorder (Canon Vixia HV30) to Sony Vegas 8. Never really had a problem with this till now.
Here's the scenario, opened capture application and in the window "preview is turned off"now displayed on capture screen.
Video capture now does not detect my camcorder, also when I click on the video tab I used to have two choices for capture #1 "Hauppauge Win TV418 video capture", and #2 "Microsoft DV and VCR".
I always use the #2 setting "Microsoft DV and VCR" and capture with no problem.
Now things have changed...... I don't get the "Microsoft DV and VCR" option at all on the video tab!!, so I tried clicking on the only available option left "Hauppauge Win TV 418 video capture" I now get the error message... Stating
The device "Hauppauge Win TV 418 Video Capture" could not be opened. Please make sure that it is turned on and is not being used by another application or user.
I went to the help section of Vegas in troubleshooting I saw that it said to ensure your camera is selected on the video menu and also ensure "smart preview video" or "always preview" is selected on the options menu. For the life of me I can't find these options. I am assuming that the "options"they are talking about are in the Sony video capture window?? I have clicked on this "option" and cannot find a place to select "ensure smart preview or always preview"!! Am I looking in the right place??How would I restore the
“Microsoft DV and VCR”settings once again ??
We have spent over six hours trying to rectify this, no luck. We have a memorial project we're trying to complete by the end of the week,.and time is of the essence, appreciate your input to this problem.
Thanks for your comments.