I just learned it take a lot of computer gigs. To accommodate
The digital camcorder Samsung scd263. I have only 40gigs, window xp.

I guess I should upgrade my computer first, before purchashing
A camcorder

Not necessarily. You can still use the camcorder to take pictures. You can get DVD burners that allow you to burn directly from the camera. But if you want to edit the video on your PC you will need a new machine.

Yes you only need your computer if you are going to edit and embellish your videos.
The computer is a temporary storage facility to enable editing. After that is done the edited version si put onto tape or DVD. A simple iMac with the iMovie that come with it gives you a lot of capability. Otherwise just show the videos on your TV or make copies like ScottGem suggested.