For the film conversion, it will probably be easier to just find a company that does that than try to find the hardware and convert it yourself. Ideally, you want one that will give you the videos in a digital format ready for editing (like AVI, MPEG, or MOV) rather than on a playable DVD, which you'd then need to rip to edit.
As for the software, to be honest, the Movie Maker program that comes with Windows (or iMovie on a Mac) are both good basic video editors. There are programs out there that you can spend money on (Sony Vegas and Adobe Premiere both have cheaper "home" versions as well as more expensive "pro" versions), but the freebies can do all the basics, which is all you'll probably need.
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