I want to be able to edit some some old home videos on my laptop and burn them to DVD as a present for a friend, but I have no idea how to go about doing this so I'd really appreciate some advice. 

I still have the camcorder, which is a Sony Handycam (and it still works). It looks like this:

The model no is DCR-PC106E if that helps, and the tapes say Mini DVM60 on them.

Is there a wire I can buy to connect the camcorder to my laptop? What software can I download in order to convert the footage to digital? 

Thank you.

(P.S. I don't want to spent a load of money so I'd prefer recommendations of free/cheap software if poss.)