The HV40 is an HDV camcorder. In FCE, the DV-NTSC easy setup is not the correct one to use; you only use that easy setup with DV video. (HDV and DV are not the same.) That is why FCE is not recognizing the camcorder.
You should be using one of the HDV Apple Intermediate Codec easy setups that matches how you shot your video. If you are in North America the correct easy setup is usually HDV Apple Intermediate Codec 1080i60.