After some more digging....I answered my own question. Found a document on the Sonycreativesoftware website entitled:
http://dspcdn.sonycreativesoftware.com/whitepapers/vegas9_compressed_captur... That walks one through setting up the different capture cards. My issue was that I had simply select the device when entering the Capture window....what I should have done when entering the capture window is to click on preferences and setup the General and Device info first.