Dear Ubrales - thanks for your answer and I did this, however it has not changed anything -
it still will not recognize the firewire and camcorder. Any other suggestions?
Use the CD that came with the camcorder. Install the driver; update the driver if necessary.
If you do not have a CD, then go to: http://usa.canon.com/cusa/support/consumer/camcorders/minidv_camcorders/zr850
Download and install the driver. Restart the computer.