Desktop Video
A few years ago I purchased a Mini DV camcorder. At the time it was a piece of "cutting edge" technology and it has proved to be a good investment. The Mini DV format has two big advantages. Firstly (as the name implies) the tapes are very small and this allows you to have a genuinely "pocket sized" video camera. Secondly, and more importantly, the camera records in digital format and is therefore able to output the video footage direct to a PC or any compatible device. When I say "direct to a PC" there are a few prerequisites; the camcorder needs to have Firewire output capabilities (Firewire is also known as IEEE 1394) and you will need a video capture card in your PC (with a Firewire cable to connect them). Finally, some sort of video editing software will be required (this is often included when you purchase a video capture card). Using the PC and camcorder in this way is often called Desktop Video (DTV) or "non-linear editing" (NLE).
I initially purchased the camcorder then started to investigate the possibilities with regard to PC-based editing. A "low end" machine will struggle to handle the demands placed upon the system by a video editing package. The two main issues are memory and disk space; the more memory the better (as is always the case) and 256 Mb RAM should be the minimum, and video files take up huge amounts of disk space (i.e. extended video segments will run into tens of Gig). If your system has a small hard disk then you could consider some of the removable storage devices that are specifically designed for the quick read/writes needed by the video hardware and software. One final consideration is the chipset used by the PC's processor - certain chipsets work better with different video capture cards (the video capture card manufacturer should be able to provide information regarding this).
I opted for a high-end Dell machine (256 Mb RAM and 33 Gb disk) - well it was high-end at the time. The video capture card that I purchased was (and still is) one of the cheapest on the market - EZDV from Canopus. The card is relatively easy to install and comes bundled with a basic (but adequate) video editing package. A set of "special effects transformations" are also included which enable you to edit scenes together and, for example, have the closing scene zoom away into the distance while the new scene slides up from the bottom of the screen. EZDV is no longer sold in the format that I purchased it, Canopus have rejigged it and it's now called EZDV Lite. The one drawback with this product (relative to more expensive options) is that you cannot directly input analogue video (e.g. VHS) into it. If you need to do this then you can buy an add-on product that will translate the analogue signal into DV-format, or, if you are buying one of the latest camcorders, you may find that the camcorder itself has an analogue input which will enable you to use both formats without having to add any extra hardware on the PC side.
Speaking of the latest camcorders, many now have their own special effects inbuilt. Many of these effects would be 'superior' to the ones offered with EZDV, but I'm not sure that they will be that easy to use if you are actually having to use them at the same time as operating the camcorder. If you do want top notch video editing then Adobe's Premiere is the market leader (although Pinnacle, Avid and Ulead also have equivalent products). The one drawback with Premiere is the price, it is rather expensive. However it does become much cheaper if you purchase Premier 'bundled' along with the video capture card. The EZDV card can be used to input video for use in Premiere.
You will find plenty of information on the Internet regarding Mini DV and videography. Although they are a commercial outfit (and the site is not easy to navigate due to the amount of advertising) one of my best references has been The Video Guys. Try browsing through their getting started guide before committing to any major purchases. Finally, a warning. Video editing can become addictive!