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Is there anything I should be aware of as to compatibilities or extra hardware/software before I purchase the camcorder.
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4 minutes of DV footage takes 1Gb of disk space
You will need more disk space. Get an additional disk and use it ONLY for your video footage (no programmes).
Search for a utility called EndItAll. This prog. stops all unwanted background progs that cause problems with editing (anti virus, firewall etc.). This is a free download

and is very handy.
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We have an old Canon Hi8 camcorder
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Why not look at the Sony Digital8 camcorders. They use 8mm tapes and will replay your 8mm recordings directly.