I don't have any experience with the DVD camcorders, but I do screw around with editing my own video. I use Sony Vegas Movie Studio. I was trying to do something yesterday and was reading the manual and stumbled across a mention of support for mini-DVDs.
Here's a link to it:
http://www.sonymediasoftware.com/pro...code=3138-3000
Let me know if you have any questions.