I'll try... at least a start...

We'll probably want some of this later... Which camera (manufacturer and model); which computer and operating system... maybe more...

"AV" from a camera or camcorder usually means analog video (and audio) out using a single yellow RCA connector (composite video), red RCA for right-side audio and white for left-side audio. When this AV-out connection is used, this is no longer digital high definition video (720 or 1080 horizontal lines of video resolution). It is 480 horizontal lines of video resolution (standard definition - even though it might be widescreen).

If you record any video to a VHS VCR, that video is only as good as the lowest common denominator, too. If the VCR is the lowest common denominator, then the video (regardless of the source) is analog video.

If you record video to a DVD recorder, it depends what the DVD recorder is capable of recording. If the DVD recorder is copying the files form the camcorder to the disc, the resulting DVD is a "data disc". This video cannot be played back on a regular DVD. If the DVD recorder renders the video and burns the disc so it can be played back on a regular DVD player, the files were rendered as a VOB file - very compressed video. OK for a final render, but not for an "archive" of video to be edited later.

"in order to use an HD camcorder, that I need to have special software in my computer, along with a Blu-Ray burner, so in order to watch it on my TV I would need a Blu-Ray player": Practically, yes. While it is possible to burn high definition video to single layer and double later DVDs, they hold only 4.7 gig or 8.5 gig of information. A BluRay disc can hold up to 25 or 50 gig of information. High definition video uses lots of space.

If watching in high definition is not a requirement, then the editing process flow = capture video to camcorder; import to computer; edit; export to high quality video file; use a DVD authoring tool to render the standard definition video to a DVD that can be played in a regular DVD player. I do it all the time.

I'll be back later with some thoughts on the low light issues... or perhaps someone else can chime in...