According to Diamond, the VC500 is supposed to show up as "OTG102" under either "Sound, Video, and Game Controllers", or "Other Devices" if its drivers are not installed. Plug the VC500 into a USB port and open Device Manager. You should check to see that the device drivers are installed correctly. I'm going to assume the LEDs are in reversed on your VC500 and the device is receiving power. When I tried to find out why you might see the red LED light up when the device was not recording, I found some user reviews indicating that the LEDs are sometimes reversed. Diamond's website indicated that the power LED was blue, but the record LED was red, and blinks while the device is recording.
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