Roger:
I have a Pinnacle USB510 Studio Movie Box connected to my VHS/VCR and the USB plugged into one of my 2 USB ports. I can see the preview, and the recording but have NO SOUND. I've tried absolutely every setting I can think of, including plugging the RCA cables (red, yellow and white) directly into my video card (NviaForce...something or other), but to no avail. Golden Videos recognizes my Pinnacle 510 box and all, and the picture clarity is far better than Pinnacle Studio 12, BUT not being able to get the sound from the video defeats my purposes. I have posted several times with basically the same problem you're having (although I do see the video on preview and record), but nothing anyone has suggested has helped.
I even paid for paid support, and still cannot get the problem resolved, so I've had no other recourse but to revert back to using Pinnacle Studio Plus 12 (do not download and install the update if you have Vista 64 bit).
Sorry I can't help you, but just wanted you to know that there are many of us out there, if you've read any of the other posts, that have the same or similar problems you are experiencing with no solution.
If there's some kind soul that can help him out, AND me, we'd both be in your debt, I'm sure.