Finally got the spec from the Sharp US site. Good camera. Also noticed a lot of very positive reviews on this camera.

I am still puzzled though as to why Windows ME cannot capture from this. Worth checking a couple of settings on Video Studio. You will have to excuse me as I am using Video Studio 4, but I think 5 is much the same)

1. Start a new project. Select 'AVI 720x576 25fps, DV PAL' if you are in the UK. Or 'AVI 720x480 29.97fps, DV NTSC' if you are in North America. Then click OK.

2. From the Global Setting menu, take 'Select Device Control' and select 'MS 1394 Device Control', as opposed to 'TI 1394 Device Control' and click OK.

3. From the Global Setting menu, take 'Select Change Capture Plug In' and select 'ULead DirectShow Capture Plug In' and click OK.

4. Capture some movie

5. Go to the 'Finish' stage and click the 'Make Movie Button'

6. Store the movie wherever and Bob should be your Uncle'

I have tested this (allbeit in XP with a Sony MiniDv Camera) without any problem whatsoever, and could happily play said movie in Windows Media Player. The only thing I can think of is that version 4 of Video Studio (and therfore perhaps 5) does not distinguish between DV Type 1 and DV Type 2. This may be important as far as your camera goes. I wish I could say for certain.

However give the above a go and post back as to how you get on.