You have a dirty or badly aged tape, and maybe dirty video heads also.
This is causing a false copy-protection error.
Some Diamond VC-500 are more forgiving, sometimes.
Hauppage is very sensitive to this error.
A frame TBC would in all likelyhood be a solution, if you have $1,500 sitting around.
Cleaning VCR video heads is easy. Do NOT use cotton, use camera sensor swabs or similar made of a soft foam-like material.
Keep the swab steady and turn the video head drum slowly by hand, do not move the swab up and down, or you can damage the delicate sensors on the drum.
Use only 97%+ iso alcohol.
Go to DigitalFAQ for better-clearer instructions and advice.
I take no responsibility for damage to your VCR, undertake this at your own risk.
Again, it may just be the lousy tape, they are getting very old now. HP Envy Phoenix/4thGen i7-4770(4@3.4GHz~turbo>3.9)
Nvidia GTX 960(4GB)/16GB DDR3/
Canon Vixia HV30/HF-M40/HF-M41/HF-G20/Olympus E-PL5.
Tape capture using 6 VCR, TBC-1000, Elite BVP4+, Sony D8 camcorder with TBC.
https://www.facebook.com/BarryAFTT

Vhs head cleaning i am ok with - cleaned our machine and saved the vhs tapes, i for got to mention im working on our 8mm tapes, will have a go at trying to clean the heads ... thought i was missing something else etc as the imagery is very clear then it shows me the copywrite etc ... will give it a go and see what happens. windows 7 64bit - powerdirector 10 ultra 64bit

What is the camera model?
What connections.
Have you tried a direct connection to the TV? HP Envy Phoenix/4thGen i7-4770(4@3.4GHz~turbo>3.9)
Nvidia GTX 960(4GB)/16GB DDR3/
Canon Vixia HV30/HF-M40/HF-M41/HF-G20/Olympus E-PL5.
Tape capture using 6 VCR, TBC-1000, Elite BVP4+, Sony D8 camcorder with TBC.
https://www.facebook.com/BarryAFTT