Download a few 30 day trials of some of the other video editors used on this forum and put the Sony software to oneside for the moment. Have you tried it with Windows Movie Maker? I recently downloaded a small capture app called STOIK Capturer 1.0 but haven't had a chance to try it out yet. It is freeware and fully functional, do a search for it on Google and see if it helps. They also do a video convertor called STOIK Video Convertor Pro 2.1.1 and although it is freeware the Pro features are not available unless you purchase it.
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Better than a poke in the eye with a pointy stick any day...
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