Cheapest way is to get a TV tuner for your PC (either PCI or USB) and then you can hook the video output from your camcorder and then it will record in a HUGE video format. Then use video editing (Ulead, Pinnacle and loads of others available) software to muck about and edit your video and then use the latest version of Nero to make a DVD or something like TMPEGEnc or Dr DivX (or similar - these are just what I use) to make it into VCD or DivX format (good for putting on web).

Cheers,

Andy