1. Ensure that the camcorder you purchase has Firewire out to enable you to connect to PC.
2. If you go into device manager it will tell you in the list whether your computer has firewire. If not a firewire card will need to be fitted.
3. If you have XP I believe that you can use the video editing utility to capture and edit video.
4.I also believe that there is a dvd writing utility in XP. For 3 & 4 I will leave to others to expand. I am not familiar with XP.
5. You will require a DVD writer drive. If you do not use the built in utilities of XP you will need a video editing programme which will do the editing and should do the writing.
6. You will need to purchase DVD discs. These will be DVD+R or DVD-R. You will need to ensure that the stand alone DVD players you intend to play them on is compatible. The most recent generally are compatible with either. My view is that the DVD-R is the most usable.
This is a general overall view to get you started. It can be a steep learning curve.
If you feel flush in the cash department, the easiest way to get Digicam video on to disc is to purchase a DVD Recorder with firewire in.
You can then transfer your camcorder video direct to the disc in the recorder. Editing will be limited to in camera. recorders can be acquired for under £200 these days. Those under the £100 mark will be limited in what it can do.
I took the plunge on Wenesday, and bought a camera from a good camera specialist, after speaking to them first, and finding out that with a 3yr old computer I would need a firewire fitted, this came with Pinnacle software, and was fitted yesterday; and also a DVD writer which gets fitted next week, which is perfect timing as one of my drives is failing anyway.