Nope, getting the footage off a DV tape and onto a PC is very simple. Along with the connections you mentioned the cam will also have a firewire port. This is the only way to get the video onto a PC as it will keep 100% quality of the recording on the tape. If your PC does not have a firewire port you can add one on a PCI card and this should cost you between £10 & £20 and include a cable to connect the cam to it.
If you are ruinning Windows XP then you have good basic editing software as part of the install called Movie Maker. As long as you are fully up to date with the MS updates then this will be Movie Maker 2. Full help and advice on useing it can be found at
www.papajohn.org however it will not create a DVD. To create a DVD you will need to buy other software such as Nero 5.5 or later or Ulead DVD MovieFactory (approx £30).
If however you don't have XP then as long as you are running Windows 98se or later you can buy some good software for around £40 to do the job, and this should include DVD authoring tools to create the final DVD discs of your footage.
Good luck with the creation of your blockbuster movie
Mark.