(it uses a digital video tape), onto a file on the computer? And is the only way to put a home-video DVD onto the computer is by using DVD shrink?

there are places where you can give your tape to and they will transfer it to disc best bet is to get a new cam

There are many programs (usually one included with camcorder) that all you have to do is plug your camcorder in to your computer with the supplied cable (typically USB) and through the program you can access your camcorder and then play your movie while your computer captures the movie. These programs will (typically) allow you to edit your movies once they are downloaded as well. I personally use Windows Movie Maker, and it work decent for me. Good Luck.

Pinnacle Studio comes with Dazzle video converter. The Dazzle allows you to import the video into the computer, and the Pinnacle will process that, and produce an MPEG. Then, you can edit the video, add effects, and menus, etc. and allows you to export it to dvd.The program and Dazzle is about $150, but I am sure the price has gone down since I purchased mine over a year ago.

If it's a newer camcorder, you'll likely need a FireWire cable to transfer video from the camcorder to your PC. Older camcorders use composite or S-video out and the Dazzle suggestion above would likely work best. If you need help identifying the FireWire port on your computer, here's a guide to FireWire on PCs If your PC does not have FireWire, you'll need to either get an external capture device with FireWire or purchase a FireWire card.