its important to do this in the correct order so the camera will be senced by the Mac and to prevent the Firewire connection from electrical damage:
power down your Mac
connect firewire from camera to Mac
power on camera and insert tape in camera and play back
power up Mac
File > Preferences > record tab
video source - select the camera you have
sound source - select the camera you have
quality - select device native
the video should show in the QuicTime window
a green line below video will show presence of sound-it will play through the speakers if they are selected in system prefernces
rewind tape and playback
click on red button to start recording
Thanks. But didn't help. I went through it all step by step. When QT opened initially, the video played, the audio meter showed audio being sensed, AND I could close the camera viewfinder and hear the audio through my speakers. I stopped playback, rewound the tape, started playback from where I wanted to begin recording. However, when I clicked the Record button on QT, it recorded only video. again, the audio meter shows line-in is working. But when I play back on QT, there is no audio. Also, interestingly, i cannot get the audio to come through my speakers anymore when i playback the video realtime through QT. I can only hear the audio through the camera. Any ideas?
Just figured it out. A little wacky. You have to open a new Movie Recording window in QT AFTER playback starts on the camera or audio doesn't get recorded. If you first open a New Movie Recording window and THEN start playback, no audio from QT - either during playback on the speakers or during recording.