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Since videos are taped in DV format, you need a firewire card (IEEE-1394) and cable. These are cheap. May be your PC already has a firewire card. Just check. Windows XP recognises automatically the camcorder. Moreover, its integrated video capture/editing module, Windows Movie Maker, is very userfriendly.
USB connection is only good for downloading still images (photos) to your PC. For more information, go to http://www.videohelp.com/.