Cheers Pete.
I use a Sony Handycam Digital 8, with "super steady shot", model DCR-TRV355E, which I bought for £150 from a guy at work (3 months old, only been used on Christmas day).
I borrowed a freinds lipstick camera and rigged it up on Frontera's roofrack - that captured some great footage.
Whilst it came with a USB lead, I bought a Firewire card and lead to get the digital tape footage to the PC.
On the PC, I use Windows Movie Maker 2 (that comes with Windows XP) to edit the footage.
I author the DVD's using Sonic's MyDVD that came with the DVD writer, although I'm also playing with Uleads Movie Factory, which does a better job but takes much, much longer to do it.
The video clips you've seen are reduced in size to 320x240, allthough when written to DVD they are proper TV quality (the camera will also do widescreen as well)
A few useful links
http://www.camcorderinfo.com/bbs/
http://www.windowsmoviemakers.net/Forums/Default.aspx
DCR-TRV355E
If you have a video camera phone and can get the clips to your PC, give Windows Movie Maker a try.
Some of my other videos
I hope that helps
Lawrence