You have to have following:
1. FireWare card(1394 card), about $80
2. Capture software( like Ulead Vedio Studio, usally attached with the 1394 card)
3. Compression software( I downloaded one from Internet)
4. VCD package software(optional, if you only sent mpg files to your family, they can see the movie on PC, you do not have to pack the mpg files to VCD format)