I've come across this problem and can't find a solution with the manual, online knowledge base, this forum or elsewhere on the internet (google searches etc). I'm using Video Studio version 10 plus.
I can capture fine with the MPEG or AVI formats, but it creates annoying black borders at the left and right sides. When I select WMV (blue arrow on below diagram), it shows the film rolling nicely in the preview window (red arrow) without the annoying black borders.

Up until this point everything looks perfect.. too perfect!
As soon as I hit capture I get the following error message;

'No Initialization', which isn't very helpful! After this point, the preview screen goes black and it won't show anything until I select a different format such as AVI or MPEG.
Now I've no idea what 'No Initialization' means but I tried repairing my Windows Media Encoder 9 series driver which is what I believe WMV runs on and this has made no difference. I've also tried the obvious restart and tweaking some options to no avail. I haven't tried an uninstall but don't see what this would achieve. I'm hoping you guys may have come across this before and *cross fingers*, there's a straight forward fix.
If you need any more information I'm more than happy to provide it.
Thanks in advance
duel
