there is a firmware fix on the sony website
VRDMC5 System Software Upgrade
1) Allows VRD-MC5 to record video directly from a MemoryStick Duo memory card recorded using a Sony's MemoryStick Handycam Camcorder or an HDD/DVD Handycam Camcorder with Hybrid recording capability. Supplemental Operating Instruction
2) Allows VRD-MC5 to record video incrementally from multiple recording media in a Sony's Handycam Camcorder with Hybrid recording capability. Improvements:
1) Fixes recording problem with no audio using a Digital8 Handycam Camcorder recorded through IEEE-1394 or i.LINK connection.
2) Corrects signal detections with a MiniDV Handycam Camcorder as copy-protected.
Download & Installation Instructions:
Please download the attached VRDMC5 System software update file (SNDF8U30.DA2) and unzip it in a folder of your choice on the computer. Also print and read the attached instructions prior to executing the System Software Update.
VRDMC5 System Software Updater.zip
VRDMC5 System Software Update Instructions.pdf