These are very good answers. The book mentioned is excellent. >> Paul Ekert has a very good book on Liquid and there is also a large number of free video tutorials online.
You can drag and drop the VOB (ie files on a dvd) files straight into your timeline and edit them with most dvds, but only if the dvd is non-copyright.
On the right hardware (the choice of graphics and sound card are important), Liquid 7 is very, very good. Better than most in fact. If you buy one of the newer consumer cameras with AVCHD format you will have to first convert the files with one of the free convertors available, but this goes with most NLE editors because this format is not good for editing in (because it is a highly conpressed and slow to edit format)
Wayne