You just need a 4pin to 4pin cable then. Firewire cables don’t have crossover cables, they are all the same except the connectors.
For disk space, DV takes up about 13gb per hour. Make sure you have lots of space.
For PC-to-PC hookup, if you are running XP on both you should be able to just hook a firewire cable between them and go. By default XP is set with TCP/IP auto-config on the firewire ports.
As for software, there’s a wide variety out there. If you buy a DVD burner or video capture card you’ll usually get something like Sonic MyDVD or an old copy of Ulead VideoStudio bundled for free. The free ones are VERY basic, but the good ones like Premiere can cost more than US$500. If you want something basic, I have a couple of unused copies of MyDVD you could have.
If you’re going to get into video editing though, you’ll probably want to get a DVD burner. They currently run NT3000-4000 for 4X DVD±RW. The newest drives are 8X DVD+R and 4X DVD-R and go for about NT5200. (Just upgraded myself to Lite-On LDW-851S 8X drive.) Quality media (I prefer Ritek) goes for NT35-45 each for 4X.