I have installed Nero 7 Premium (Version - 7.9.6) which includes Nero Vision version 4.9.6.6.
I have a Pinnacle PCTV TV Tuner PCI card and I am using this as a Video Capture card.
My OS is Windows 2000 SP4.
I connected my Sony handycam (DCR-HC40e) to the S-Video socket of my Pinnacle card and fed the audio from the handycam to the "Line in" of my RealTek AC'97 audio card.
With this setup, I chose "Capture Video to hard disk" after starting Nero Vision 4.
It shows me my Pinnacle device as a capture device and when I play back my Mini DV cassette in the handycam, I can see the video in Nero Vision's video region (after configuring the Video source to be S-Video in the Video properties dialog).
BUT, when I open the Audio config dialog (where almost every thing is disabled), and choose my audio card i.e. RealTek'AC 97 from the dropdown, Nero Vision does not accept it and after a screen flicker goes back to showing nothing as selected.
When I choose the Pinnacle device from the same drop down, it stays, but none of the other controls are enabled because my Pinnacle card does not have a audio capture facility.
Thus, when I record using Nero Vision, although I can hear the audio from my PC's line out (because I had fed the handycam output to Line in), the video is captured fine, but no audio gets recorded.