There are a number of software packages that you can use to import the video and edit it. Pinnacle Studio or Sony's Vegas Video are some of the more popular and less expensive options. You can get them for $80 to $150 or so. Features along with price go up from there.
As for your PC, you will want at least 7200 RPM drives, a good processor and a lot of ram. And of course a firewire port.
My current video editing machine is a Dual Core 3ghz machine with Crucial Ballistix 3GB DDR3 12880 memory and multiple 1TB 7200 RPM SATA HDs.
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