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1) Will my Vegas6.0 RECOGNIZE & capture video when I hookup this Canopus converter via 1394Firewire?
Yes, it will look like a DV camcorder to Vegas and allow you to start and stop capture. You will just need to manually press play on whatever VCR deck you are using before pressing record in Vegas.
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2) Is this a good Analog-to-Digital converter box? I've heard of the DAZZLE product before but heard its really "buggy" to get it to work properly.
IMHO, the Canopus ADVC-110 is the best in that price range bar none. The Dazzle is a consumer unit with questionable quality... the Canopus is a professional tool. I have the Canopus ADVC-300 which includes noise reduction and time base correction for really poor tapes but it does cost twice the price. You will be very happy with the ADVC-110.
~jr
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