Okay, here's a mini version of how it's done:
I-Link is FireWire. Find yourself a FireWire interface card at most computer/electronic stores. They run about $99.00 or less. I've see one for $39.99 or so, can't remember where.
Install the card and any drivers that come with the card.
Secondly, you will need to get a video editing package that can support the FireWire card or drivers that you have. Adobe Premiere is one, but it's really expensive. Check out Video Factory (was on sale for cheap at CompuUsa, I think), or VideoWave, or VideoSuite, etc.
Then, it's easy. You plug your camera into to FireWire port with a FireWire cable (kinda like USB), then run the software. You should then be able to control the camera and copy the video digitally to your hard drive. The software knows how to do this. It's similar to using a scanner to scan a picture into your photo-editing software.
Then, using the software, you edit the video that's on the hard drive to what you want. When you are done, pop in a new DV tape, and send the video back to the camcorder digitally. You can the play it on your TV, or record using it's analog output to a VHS recorder, if you like.
You can even convert the video to Video CD (VCD), burn a copy to CD-R, and play it on most DVD players. That is left as an exercise for the reader 😀
You will want to have a large, fast hard drive with gobs of free space. and plenty of RAM if you don't want you system to be really slow...
Hope this helps!
Danceman