Video Capture Disabled (grayed) in ATI Multimeida Center TV

I'm trying to capture video from my analog PAL camera to my computer.
Here's what I sent to ATI's support - Anybody can help?
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The current situation is as follows: Everything is connected. I'm able
to activate the ATI-TV application. When I set the input type to
composite I'm able to view and hear to my video camera playback on the
computer's screen and using the computer's loudspeakers.

HOWEVER, what I CAN'T do is press the "capture" button and record the
video & audio. The button is disabled - it's displayed in gray. The
"Stills capture" button works okay.

The system WAS working ok - I WAS able to capture video. However, I was
not able to hear the audio because the ATI board was not connected to
the "line in" of my SoundBlaster Live! Audio board. Before discovering
that this was the issue, I've downloaded and installed (as instructed
by the ATI site) a Microsoft Direct-X 9.0b hot-patch for PAL capture.
As this has failed to solve the audio (i.e. I haven't yet detected the
missing cable :-) I've downloaded and installed (again as instructed to
on your site) Windows Media Encoder 9.0 (was probably already
installed, so I did a "repair"), ATI Multimedia Center 9.1 parts 1 and
3 (i.e. DAO/MDAC and Multimedia Center). I haven't downloaded the DVD
Decoder as it is the site indicated that it's the same as the previous
version and Requires original installation CD, so it seemed an
unnecessary headache.

So, what do you suggest? Once mo I see and hear the preview and have
installed the latest software on an already-working system, but now the
software prevents me from recording. It's not that it doesn't work -
the software doesn't let me!

Avi