You click File, Open Device, select the nvidia and your sound card and the country and it should input...
To record the input to a file...
Click View, Capture, and select your options.
As for the black and white, I can only assume it was the drivers that fixed it as I have done nothing else to my system...
So try a uninstall of the drivers and reinstall...pain in the butt but it is all I got.
After install windows popup some driver install box's or whatever I jsut do them and everything seemed to work, I clicked run this one time option then ran them, then i rebooted again.
Doom9.org is an excelent source for video crap...after you get it capturing that is...