Remember, I'm new at this too, so here's what I have so far-Sony TRV22 camcorder which is connected to my computer with 1394 firewire.(my computer savvy dad hooked this up for me by putting in a new "card?" into a pci slot in the back of the tower, forgive me those who are tech savvy) to which a cord runs that connects to the camcorder. I also had him install a HP dvd writer420i, so I could actually burn onto dvd so it would be able to be played on the dvd player on the TV. I have the Pinnacle Studio 9 program which allows me to "capture" the video that's on the camcorder to the computer, from there I'm able to edit, and then "make a movie" Also installed a external hard drive that is strictly used for video and pictures. That one was easy to install actually. You need certain memory and speed requirements on the computer, which you can read about on the above links.
All sounds simple when writing it down, but actually there's so much to learn. I don't know if I would recommend the Pinnacle studio program, only because now that I have it and have started reading others' comments on that forum, it seems that many people are having many problems with it, crashing, hanging, not doing what it's supposed to etc. But can't necessarily recommend another one either, having no experience with them.
think of it as a learning experience, rather than getting overwhelmed by it all.