I have a camcorder linked through the "red adapter" and when trying to create a new project an error message is displayed reading "no connection could be established". Using Win10.
. . . . "no connection could be established" . . . .
Assuming that the USB Video capture device can be seen by Windows ie the correct drivers are installed, the message would suggest you have chosen the DV Camera mode for recording - you should be using the Analog option in the recording dialog.
You should then see the USB device drivers in the circled options as shown below - yours will be different from mine.