I just bought VS11 (std, download) and can't capture from Canon ZR500 (digital) - always get "Cannot start the capture graph". Yes, the recorder is plugged in - it can be controlled from VS and will display the video, just won't capture.I had used the demo VS11 a few months ago and was able to capture with it, although I seem to recall having the same problem early on.
I have seen a number of replies to this complaint on the forum and they are not helpful. This is evidently a serious problem reported by many users and should have been fixed before VS11 was sold.