I've had no problems with a 'KWorld' USB capture -- looks just like the EasyCap thing. This was on an older XP machine but unfortunately it's not easily possible to test it on my Win 7 machine here.
Can you capture OK with any other software? If so I'd suggest capturing thus and then bringing the video clips into MEP from the media pool. Yes it two steps but you could be transferring a long tape with program X while you are editing with Video Easy.