Windows XP movie maker

I've done a bit of searching, and it seems a lot of people have had this problem but I haven't been able to find a solution anywhere. I'm trying to capture a video from a VCR onto my computer to put on a dvd, through my graphics card. I have the right drivers installed, see it in the device manager, but when I go to capture in Movie Maker it says 'the video device is currently in use...' and won't let me use it.

Someone somewhere suggested disabling the 'Media Center Receiver Service' in services, but I don't even see that in services. Another thing was that codecs may not be compatible with MM, especially .ax. Well I did download a few codec packs and have a stack of .ax codecs in system 32, but in compatibility of WMM 2.1 I disable all codecs and had the same problem. Also tried another program and had a similar problem.

Any ideas what it might be? Would I get the error if my vcr wasn't plugged into the card properly? It is s-video, and has a svid-av plug with red/blue/green. My VCR has red/white/yellow, and my AV cable has black/red.