I think that you will definately need to add something to modprobe.d
It looks like the bttv driver does not autodetect the card so you will have to specify the card type. It needs one master and three slaves.
Look here for details - http://www.linuxtv.org/v4lwiki/index.php/Kodicom_4400R
Once you get pictures showing up using xawtv or something similar, I think you will find that your blue screens are replaced with pictures.
Once it is working keep an eye on your disks as motionwrapper by default stores not only the changes but also timelapse movies(frame per minute) for each day and movies for each detected movement so it can consume quite a bit of space.
Anyway, good luck, it looks like you are not far away from getting it working.