Unfortunately TomP you are absolutely right. They mean well but actually hinder by giving 'stock' answers.
I have this error as well. I'm guessing (and I admit it) that there is a VIDeoCAPture handle in windows 98 that has been taken out of XP/Vista/VistaBugFix (aka Windows 7) and the therefore the driver cant find it.
Reckon it could be time to add to Global Warming, care of Microsoft, and be forced to buy a new cam :-(
EathD
November 2009