When you have the unit on and the tv on the correct channel, are you getting the neuros menu screen? And if so, when you go to the recording function, are you getting the preview screen showing what's playing on the television? If not, then something's definitely not hooked up correctly. Once you see what you want to record playing in the preview screen, you should be good to go.
hope this helps
also, check out these instructions--they helped me alot in getting it set up correctly (even though i'm recording for playback on a psp)
http://www.neurosaudio.com/support/NeurosMPEG4_Recorder2_iPod_Video_Howto_StepbyStep.asp