When you plug in the camera, the system detects it and the hardware wizard comes out asking for driver. Normally, you shall click cancel and use the CD that comes with the camera to install the driver. However, the driver installation software failed to detect the camera and keep asking you to connect the device!
The system detects the camera as a USB device, however, it should be detected as a video device.
You use hardware wizard to install the driver. However, don't choose automatic but instead, go for manual install. When you are asked to choose the type of device, choose video device instead of USB! If you choose USB, the wizard will again fail to detect the device and thus failing to find the suitable driver for it. However, if you choose video, it will detect and proceed to install!
Thanks Stefan from TIS, he's the best technical support people ever!