Thanks Dave & Neil once again for your comments!
Dave, Yes, the camera is in VCR mode during the playback sequence.
Neil, I too am in disbelief as to a solution (vs. an alternative method) to my problem. Currently, I have popsts on both the Windows 7 forum and SONY's support site. So far, no replies. I ahve also searched the 'Web' looking for solutions, all I find are similar cases for which similar solutions have been suggested, but I have found no cures to this dilema.
It has been suggested to update drivers (eg. video, capture cards), update the BIOS of the mother board, etc. of which I have not done to this point but probably will soon (even though I don't see this correcting the IEEE card,s inability to correctly interface devices with my system).
Although I initially posted the problem on this Forum, it looks like more of a Windows 7 / IEEE card compatibility issue, hence posting the problem on the other stes as well.
I do want to once again thank all that have responded to my problem here on this Forum, the member's participation has been far greater than any of my other Forum postings.
Not sure how this will end, it's been a much greater issue than I expected given we're not looking for solutions to 'rocket science'...