As mentioned you need to have a firewire port on your PC. If it has one then you will just need to get a 6 pin to 4 pin firewire cable (normally supplied as standard with firewire cards). The 6 pin end will connect into the PC card and the 4 pin into the camcorder. Some PC's will also take a 4 pin connection, so if already installed check the mobo manual etc to see if you do need 4 pin cable.
Any of the basic DV editing progs will do most of the work in creating a VCDfile. You will then need something like Nero to create the actual disk. If the editing software does not create a VCD compatable file then Nero will convert the file before writing it to disk.
Full tutorials and software advice can be found at
www.dvdrhelp.com
Mark.