The netbook is running Windows 7 Starter which does not include Windows Movie Maker, so I couldn't check to see if that offered a capture from device option. I have installed Windows Live Movie Maker - which looks adequate for my limited needs, except it too did not offer capture from device for video.
So, a little research and I found mention of Debut Video Capture and this looks like it will do. It also offers screen capture with simultaneous audio. Found via komku.net.
Here is a sample....
I must remember to look at the camera when speaking to it.
Debut Video Capture