You already have a digital camcorder
What you need:
a firewire cable (unless your camcorder uses usb2 only)
a firewire port on your computer (or usb2 port as above)
you will also need an application to capture your footage. Windows Movie Maker is fine for this. There are more advanced editing packages available, such as Avid or Adobe Premiere.
Most camcorders use tapes to store video. I'm not quite sure how far flash memory camcorders have evolved as I have yet to see or use one, but at the moment, in terms of quality and functionality nothing beats the standard digital video format for consumer/prosumer cameras.