If your budget is tight then be careful if wanting to edit on the PC. This can add a large amount of money onto your budget before you even realise it.
To start with you will need a firewire port on your PC (from around £20 up and most PC's don't have them).
If running Windows XP then you already have software (Microsoft Movie Maker, but download the free upgrade to MM2), if not then this will also be required (around £30 up with a card).
Loads of spare disk space. 4 minutes of footage will use approx. 1Gb

of disk space. Hard disks cost just under £1 per Gb ie 60Gb drives from around £50
Digital8 camcorders are only made by Sony, but they save to tape in the same format as any DV camcorder. They can record to old Hi8 tape, but these are not ideal as they are not designed for digital recording. D8 camcorders can often play back old 8mm/Hi8 tapes that were recorded on old camcorders, so could be handy if you have any old tapes.
Mark.