I'm trying to use VirtualDub VCR+Sync, but any version of VirtualDub does the exact same thing. I go into capture mode, configure all the settings, etc. and the image from my VCR immediately appears in the capture window. I then choose to begin the capture, but when I click to finish, it says "Warning: no frames captured. Make sure your capture card is functioning correctly and that a valid video source is connected. You might also try turning off overlay, reducing the image size, or reducing the image depth to 24 or 16-bit." ??? I have no problem recording from other capture programs. The reason I want to use VirtualDub VCR+Sync is I hear it's great for keeping the audio and the video in sync, which is something that systematically fails with the other programs I've tried.
I too had problems similar to yours. I changed to ScLive (Scenalyzer) and haven't had a synch problem since. The demo version will give you some idea.