Cannot Capture Webcam Video

[freemarket]

My Windows Movie Maker in XP pro can capture my webcam video but I cannot get VLC 221 to do it. It creates an empty file even though I have spent many hours trying and googling. The last two lines in the debug message are:

core debug: no art finder modules matched
core debug: art not found for Streaming

I Also tried Free Webcam Recorder.exe which is very lean and worked well but it doesn't do audio. Maybe someone will read this post and put all the clues together. Thanks much for any ideas.