Hi. I do know how to do that. You need some software that's capable of controlling the camera such as Adobe Premiere, Final Cut, or something like that. I believe Microsoft Movie Maker will do it and so will Roxio Media Creator which is the package they sell that burns CDs and DVDs as well. It's a whole media center.
The camera has the capability of being controlled through the firewire port on the front. You get a cable for the firewire port on the camera (firewire mini 4 pin) that goes to the computer (firewire 4 pin standard size). If you have an older computer with no firewire and it does have a PCMCIA card slot sometimes called a PC slot, or express card slot ... you can buy cards that will give it firewire ports.
You MUST have firewire to do this. The newer machines like the Acer Aspire One or any of the netbooks don't have any way to add firewire although the CPU is fast enough for video work. I capture on my old computer with firewire, and save the video to an external hard drive and edit on the netbook. Anyhow, I'm getting sidetracked!
Open your editing program and have it do a movie capture. The capture window will have buttons that look like the ones on the camera for fast forward, reverse, play, stop, etc. plus a couple for single frame reverse and forward which is useful for editing. It will also have a record button on the software. Play the tape and just as you start it, hit record. It should capture and you'll see a little data window on some software showing the frames captured and dropped during capture. That's about all there is to it. Editing is a bit trickier and I'm still learning alot of it. You can get older copies of Premiere online from a number of different sites. It's my personal favorite. It does more ... but the movie making software Microsoft provides with Windows XP and above will perform the capture perfectly well. Good luck with it.
If you have trouble, I'll be happy to get online in a chat session and talk you through it if that would help. I'm on AOL and my email is firstname.lastname@example.org
Lynn in New Orleans