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you need to either get a video card with video in, a video capture device (USB), or if you have a new computer and a new video camera - direct via firewire. The first two options will come with software. the last requires software, but you can grab moviemaker from microsoft and do the job.
You can embed the AVIs, but you will need to ensure that you include any necessary CODECs used in the compression/capture.
-ken
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