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I tried last weekend though. I used a Sony TRV-22E MiniDV Camcorder to record the video and transferred it via firewire through iMovie on my Macbook.
The raw video which is about 11GB is not the quality I expected. It's interlaced and blurry when something moves.
Is this just how the video is captured or am I doing something wrong?
You might want to make sure your computer is only digitizing the footage, and not a lot of other tasks at the same time. There are many sites that handle just this issue, step by step with illustrations and all that. But you may have already found them by now. At any rate, good luck!