Hi Boatsink
Welcome to the wonderful world of digital videography. Yes, a firewire connection is a must. You can get one fitted internally but you can also buy a PCI card with (I can't remember if it's three or four external sockets and one internal). Get a four pin to six pin firewire cable to connect your camera to the Firewire socket. You already have editing software on your computer in the shape of Windows Movie Maker but a good suggestion is Adobe Premier Elements 2 which is on sale in Jessops (UK) for £70 or Ulead Video Studio 9 again from Jessops (UK) for £50. You have enough hard disk space at present but do upgrade to an internal one at some stage. As far as video making is concerned, look at television and the movies and see how 'scenes' are composed. They are in focus, steady and don't stay onscreen for a long time. There is also no excessive zooming in and out, or swinging the camera left then right then left again.
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Better than a poke in the eye with a pointy stick any day...
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