The message you get doesn't indicate a connection problem between the Video8 camera and the Grabster 400 capture device. This is an analog connection. The software doesn't have any way of knowing what analog device is connected to the capture unit or whether any analog source is connected at all. Rather, this error message indicates a problem connecting to the digital capture device.

What software are you using to perform the capture? I assume it's the Magix video software that was provided as OEM version with the Terratec hardware. In this case, please make sure that the Grabster 400 is properly connected to the computer. Also, in the program, make sure that you choose "Analog Video" as recording source, not "Digital Video". This is not a DV capture. If you do click on the DV capture option, you will get the error message quoted above, as the program will be looking for a DV camera connected via Firewire. If you click on the "Analog Video" option, the program will find your Grabster, if it's properly connected. Then you can start feeding in the analog signal from the analog camera connected to the Grabster.

I hope this helps.