Welcome to the forums Aaron,
If you've read any of Ken Berry's posts concerning anything Pinnacle, you would have noticed a very common statement. That statement being along the lines of, Pinnacle makes all it's stuff proprietary, so you have to use their capture software for it to work.
Have you tried capturing with the software that came with your Dazzle device?
FWIW, I have an old Dazzle thing in a box or drawer somewhere. I haven't located it recently. If and when I do, I'm going to place it in the trash can, where it works best..
In other words, I recommend getting a capture device that will work.
Some here use Hauppage cards, and some like myself use a Digital 8 camcorder's pass-through to capture.