Your camcrder is already compressing the video in a lossy MPEG-2 format. You're going to have to transcode that into an editable format, work on it in iMovie, and then re-compress it again to burn a new DVD, losing picture quality at every step of the process.
Unfortunately, you can't put mini-DVDs into the mac's disc drive because the Sony format (VRO files) are not compatible with any mac software, and so far as my research has shown, there is no program that will convert Sony VRO files (as opposed to Hitachi VRO files) into a mac-usable format other than trying MPEG Streamclip. For getting the MPEG-2 files off the DVD try using MactheRipper
If you're planning to do this much at all, you'll get much better results by selling your camera and picking up a Mini-DV unit. It basically defeats the purpose of recording to DVD if you're going to edit it & burn it to another DVD anyway.
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Last update: 06:08 PM Saturday, February 4, 2006