What video capture hardware are you using?.
can you confirm that the drivers are correctly installed?
what OS version?
Without starting catalyst - Is there any software with the capture card where you can confirm that you are getting a good live input (Blackmagic cards have this feature)
If no success - Can you try un-installing driver / restart / re-installing - check the install cd or dmg
You need to prove that you are getting a good live image without using catalyst 1st if possible - once established - we can check your settings are correct in catalyst.
Haven't seen any issues with video input in M165 at all - its usually external driver issues / setting...
Let me know your findings