Your camera will have a "camera" setting and a "VCR" setting - it must be in the "VCR" setting to be able to import video.
The VCR mode for the Canon ZR700 is entered by switching the mode dial on the right side of the camcorder to the Play setting. When switched to VCR mode the LCD screen immediately displays a diagram for the joystick in the lower right corner of the monitor. When viewing video footage the up arrow controls play/pause, the right arrow controls fast forward, the down arrow controls stop, and the left arrow controls rewind.