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What model of HandyCam is it?
Did you try installing the drivers that came with it, or did you plug it in and see if Windows had the drivers?
You could try and download the free trial of Adobe Premiere Elements (I think the current version is V3.0) and see if that helps.
I have a panasonic camcorder - windows vista had the drivers to recognise it when I plugged it in via Firewire (should use this over USB for camcorders), but Premiere Elements v2.0 gets an error trying to control the camcorder :mad:
If all else fails, you could dual boot XP and Vista on that machine if you have an old XP install disc - use it until there are vista drivers for your camcorder.
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