The paused video seems to take over the video overlay and prevent the preview window from displaying.
When you go to capture video it does not show the camera preview. However, when you actually capture, it does in fact capture video. The video shows in the library and plays back fine.
The solution is to disable the Corel Guide on start up so it does not load the tutorial videos. This issue will also occur if you have the guide disabled but go directly to it after launch before trying to capture.