The format is a standard definition digitally encoded video+audio stream recorded to tape. This means that you have to have a way of getting the decoded stream into the computer. Most video editting programs which support DV capture will use Firewire.
Page 50 onwards in the manual tells you to use the supplied software to capture the video by USB.
Presumably this will convert the video stream to a format that Video Easy can use.
I've been told by Magix support the problem is that I need a firewire connection to connect to Video easy but I can capture the video to Windows Live Movie Maker via USB and then transfer it to Video easy so I will try that.