Make sure you're connecting via Firewire and using the regular DV capture dialog in the program. If you really can't get the program to connect to your DV camera in the regular (DV AVI) capture mode, try using the MPEG-2 capture mode that is also available in this dialog. This works slightly different and might do the trick here.

If everything else fails, just try to work around the problem by finding a program that can connect to your camera (try Windows Movie Maker or the free "WinDV") and use that to capture the DV AVI files to your hard drive. When done, import the files into the Magix video program for editing and DVD-authoring.

I hope this helps.