RE: how to edit?
Higgy -
The camera you have is an analog camera, not a digital. Basically that means you're not going to have a USB or a Firewire port with which to connect it to your computer. You're correct that all you should have are the two A/V hookups (yellow/white) to connect it to a TV. I don't have a lot of experience with connecting this type of camera to a computer so I really don't have any good advice to give. I believe you can purchase a video capture card for your computer that you can hook A/V into, but again, I don't have any experience with this.
If you have the money you can buy a decent digital video camera for around $300 now that's is very similar to the 8mm analog camera you already have. If you go this route you'll find it much easier to transfer your videos to a computer.