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Get a 3 CCD semi pro video camera or better. The choice is really a personal one. Read the reviews of several cameras and then go play with the ones on your shortlist.
For video editing there is really only one choice , a Mac G4 and Final Cut Pro. If you cant get your head around Final Cut Pro then iMovie comes with the G4 and is free.
Dollar for Dollar you're going to get stress free system using a mac and either FCP or iMovie.
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