What's the deal? You didn't LIKE my answer to you over on the Sony DV board from YESTERDAY?
Well here it is again.
1. Unplug the FW cable at both ends.
2. Turn off camcorder and remove the battery for 30 minutes.
3. Find the "Reset" button on the Camcorder and press it in for 2 full seconds.
4. Turn on the camcorder.
5. Shutdown, then Restart the computer (but not the edit software, yet).
6. Reconnect the FW cable at both ends.
7. Start the EDIT software.
8. See if the FW connection is OK now.
Get a NEW FW cable and start with step 5 above.
If still no-go,
try your camcorder FW output sent directly into another FW DV deck or camcorder to see if the FW out is working at all.
You'll see your camera's FW feed on the LCD screen of another camcorder if you put the other camcorder in VCR mode with no tape playing in the 2nd camcorder.
If no-go there, looks like you have a "dead" FW port on your camcorder and yes, it will cost several hundred dollars for the original manufacturer to repair it.