Best quality is is Digital Video, DV.
What camera, can't say as the one I have is a few years old now, I would suggest magazine reports/reviews narrow it down to features/costs then go and have a look/play with one.
To get video onto a pc you need the appropriate cables/connectors, assuming that the camera comes with a firewire connector you will need a firewire connector on your pc.
Once you get the video onto the pc you need to edit it with software, I use pinnacle studio 8, 9 is the latest version, there are others by ulead, adobe and many more.
I assume your operating system is XP, if not, if it's 98 then there is a file limitation size, 2gb I think, about 15mins of capture video I think. XP as long as the hard drive format is ntfs then there is no file size limits, as far as I'm aware, except the actual size of the HDD. I would suggest do a certain amount at a time say 15-20mins, as rendering can take a while.
Once you have edited the footage you have a choice, where do you want to pit it? If you want to put it onto tape then the camera needs to be DV in as well as out, that means you can record the edited video back onto the camera and then the camera to vhs. NOTE not all cameras are DV in/out, check before buying.
If you want to put it onto DVD, you can use the necessary software to record to DVD. Most recorders come with some sort of software for burning, I personally use Stomp Record now max, or nero, you'll also find that some of the editing suites have the ability to burn to disk as well.
Haven't been here for a while but check this site out
http://www.mikeshaw.co.uk/editing.htm
Hope that helps
