Hi Michael,
I've found a solution to our problem and it was in the box that came with the camera. It's not the ideal solution, but it does work. Pinnacle's demo of 'Liquid Edition' which was supplied with the camera, does capture in stereo at 48 Khz 16 bit mode.
I've had no luck with any of the following packages:
Win XP's built in 'Movie Maker'
Adobe 'Premiere V6.5'
Sony 'Vegas Video 4'
Ulead 'DVD Workshop'
Now the point is - this camera should capture to any capture software, but it doesn't. I'd be interested to know of anyone else with same or no capture problem with this camera.
Michael, contact me by email for more detailed info on Liquid Edition workaround. Cheers Jim