Cheers bud. It looks good atm with PiP preview, just a shame it cant record. Even then its still going to be 2 avi files, but found you can merge them again in Premiere pretty easily. Getting it to record PiP will be a nightmare, think I will pass that pleasure to someone else!
Another thing I thought of, is it might be an idea to start it up with no ini file, so it defaults on everything. That way it should allow you to select everything and save a new ini file. I dont think it will solve your cam not showing up issue, thats most likely a driver one, but worth a punt if you havent already tried it.