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Firstly, this may sound stupid, but you didn't mention it so I'm going to assume you don't really know all that much about it all, but in order to edit, you're going to need a capture card [firewire].
I would suggest a Pinnacle System. These can range from **** to fantastic. Don't get studio DV plus because it can't export very well, best choice is the Pinnacle DV 500 or a Matrox RT card. These are expensive. I do know people who have just bought a firewire card and have been able to go really well with it. Mind you, doing it with a simple firewire card does mean that you won't be able to export to analogue.
Software, I would stear away from Videowave for the one reason I don't know much about it, so can't really say. All I know is that I've never used it and no one I know has ever used it, which says something. I've been using the software that comes bundled with the Pinnacle card, but after my weekend editing with Adobe Premiere I have found that this is far supirior and with about tqwo days of practice, the majority of the basics can be acheived and from there on in, you can be doing all sorts of effect with little to no difficulty at all. The Mac equivalent is of course Final Cut Pro, which would be my choice for Mac users. Go Adobe Premiere 6.0 which comes with the QuickTime option built in. Which is a help for exporting to the best web format without having to already have it on your computer.
Cameras. I use Panasonic, but it is general consensus that bar looking nice, these cameras are CRAP. I too have found this as I have progressed, I can can get better sound and equal picture quality using a Sony Hi8. You may want to experiment: Digital8 is by far the cheapest digital format, and the cameras give you a choice between digital and analogue. MiniDV [my format] is the most widley used and is great, basically. DV or DV Cam is the most expensive, but has the longer tapes. Go Mini DV if you don't know what suits you best, or you don't know anything about camcorders [or video cameras, as I prefer to call them]. The best bet is to go with Sony, go lower range if you're not going to seriously be making films, otherwise go with the VXR2000 or whatever it's called. The VXR1000 [or whatever] was way ahead of it's time, and is much cheaper than arguably the best camera out their -- the Canon XL-1. Yeah. With the camera, I suggest you go with either Canon or Sony [don't even TOUCH JVC] and just basing your choice on your needs.
Have a good one.
And cut!