This is an interesting one. I’ve been using Vegas since version 3 and I’ve never had this issue. When I capture using the Canon HV20, I get “device not connected.” I tried using the DV capture option, and I get a new message:
“The device “Microsoft AV/C Tape Subunit Device” could not be opened.”
The solution is Options / Preferences / Video / Uncheck “Use external video capture application.”
Now, when I go to the HDV or SDI capture application, Vegas sees my camera again.
Thinking this over, this makes no sense why it solved my problem. I wasn’t originally using the DV external capture option. I was using the HDV option. Somehow, though, going through that process reset something in Vegas and now it’s working.
Happy editing!