Hi darrenpp and welcome.
The USB connection is not supported in Vista or Windows 7. You will need to get an iLink cable (aka. Firewire, DV) which is generically supported by Windows and import into something like Windows Movie Maker or another editing program. I presume this is why you are getting the message "Check iLink".
http://www.amazon.co.uk/Firewire-4pin-4pin-IEEE-iLink-Cable/dp/B000K7BDW2/ref=sr_1_1?ie=UTF8&qid=1342731078&sr=8-1
This requires that you have a Firewire/iLink/DV input to your computer.
USB should be supported in XP but you will need the driver on the original software disc.
Have a look at the Support Page for your model here: -
http://www.sony.co.uk/support/en/product/DCR-HC53E/updates
