Windows movie maker on Vista ( rather than XP) may well be better at editing the mpeg2 files that you get from a DVD camcorder but you are better off getting proper software ( not free) but a lot are quite affordable and cost far less than some X Box games

Most recent Software can do it
Also, if you must watch stuff off an unfinalised DVD.. you can
Capture from the camcorder as analogue: look at the Pinnacle? dazzle devices
or
Record as analogue ( av out) to a settop DVD and "waste" a DVD blank
otherwise waste the MiniDVD

or wait till its full