|"Besides a good computer..."|
1.4GHz and +512MB RAM is the low end of a good computer when considering video editing.
I highly suspect (without checking) that your camera produces Analog output seeing that it does not have USB or Firewire outputs.
Computers work with digital signals.
You will need an Analog to Digital converter be it through a capture card or another device such as Plextor AV100U that also comes with WinDVD for editing the video. This device is the cheapest one I could find. Pinnacle TV something or other comes with a video capture card and Pinnacle Studio 9 but I had already paid for PS9.
It is my understanding that a PC needs to be able to sustain a data transfer rate of 4MB/second in order to work with video. That is not a lot but I'd bet your current machine can not. PC PitStop has that as one of their full tests.
It is also recommended that the video to be edited not be stored on the same drive as the application performing the editing is stored. So, two hard drives is essentially recommended.
My new machine does not have a video capture card. It does have a PCIe 16x 128MB ATI Radeon X300SE video card but it only has Video out.
To get video from my Digital camcorder I use the firewire connection on the camera to the firewire card I added to my PC. This is hte best connection and data transfer on my PC.
To get analog video such as from my VCR I use the above mentioned Plextor device and it works a treat. I use Pinnacle Studio 9 ($48 US) for my editing if burning them to DVD or Windows Movie Maker 2.1 (free from MS) if storing them on my PC. I use WMM2.1 for it's ability to make a quality .wmv file out of the much greater .avi file created from the data transfer. The resulting .wmv file size is ~7% of the size of the original .avi file (eg. 400MB .avi to 30MB .wmv)