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NOW - do I still need a converter of sorts like Dazzle etc....or camera to camera to PC will work?
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If you get/have a DV camcorder that has the AV-in enabled then that is all you need to get your analogue video into the PC, other than a firewire port on the PC that is. No additional capture devices are required.
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I have enough HD space, and am going to get a good graphics card (have windows XP).....any specific card to use if going the camera to camera option.
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TBH you probably wont need to upgrade your graphics card as video editing on a PC does not rely too much on the card. As you say you are running Win XP I assume it is a fairly modern PC and therefore the graphics should be good enough.
Other than a firewire card, if not already on the PC, no other cards/upgrades should be required for now.
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What I'm asking is that I don't understand the digital camera connection to my analogue camera and what else is needed to convert?
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Connect the analogue camcorder to the DV camcorder with an S-Video lead (or the yellow phono connection, but this is not as good quality) for the picture. The DV cam should have been supplied with a lead with probably a jack plug on one end and phonos, red & white for stereo sound and a yellow phono for video (that should only be connected if not useing an S-Video lead as suggested above).
Put the DV cam into VCR (or replay or whatever its called on the cam) mode and either connect to a PC via firewire and capture directly, or put a DV tape in it and record to the DV tape from the analogue cam.
Mark.