DV IN always appears when you connect the firewire cable and turn the camcorder to play/VCR while you have the blue screen. It doesn't mean you can't upload to computer. As soon as the film starts playing DV IN disappears.
Pinnacle can be a bit 'touchy' about recognising the camcorder, but I find the best way is to go into 'capture' before turning the cam to VCR - Pinnacle says it can't connect, then turn the cam to VCR and windows will detect it, say yes to edit with Pinnacle, go into 'set up' and 'source' and confirm the obvious. Then just 'start capture' and hope it does. They say Pinnacle is unstable, and this is probably the most unstable bit, but once it starts capturing you're usually OK.
Win XP, Athlon 1.8, G force 3 T, 1 60gig drive + 1 250 gig, Pinnacle Studio 9 plus mostly, Premiere 6, and Vegas 5 sometimes, Soundforge, Cool Edit.