I'm assuming you have a firewire camera
Try using IMAQdx functions instead of the IMAQ functions.
If that doesn't work.
Open "Measurement & Automation" (also know as MAX) from the National Instruments Directory in the start menu.
In MAX under "My System\Devices and Interfaces" is there a section called IMAQdx and under that is there a camera that you can see.
If so can you snap and grab images from it from within max.
If this is the case then you should be able to access the camera using just the IMAQdx vi's which I know can do what you want (The spot vi's may be using the NI functions internally, but I don't have them to poke around in).
If that works then you can ignore the rest of this.
If you can see the camera listed (probably called cam0) but you can get an image from it from with in MAX what error are you getting.
If you can't find IMAQdx in max you may not have the IMAQdx component of vision acquisition software installed (which is needed access firewire cameras). In the LabVIEW in the vision section of the functions pallete is there a NI-IMAQdx directory.
If your missing it and have a license you (and since you have IMAQ grab you should) can downloaded from (warning it is 650+ megs)
ftp://ftp.ni.com/support/softlib/vision/Vision%20Acquisition%20Software/8.5.1/VAS851.zip
Warning: when I installed the vision acquisition software, my third party software stopped working, because it changed the driver to a NI one.
To reenable the third party software, I had to change the driver for the by right clicking on it in MAX and changing the driver there (you might have
try a few drivers to see which works), but I couldn't use the NI functions for the camera until I set the camera back to the NI drivers.