The USB cable will work for transferring still photos to the Mac, but not for movies. A USB-2 port on the Mac is preferred.
To transfer movies, you need to buy a Digital Camcorder to Firewire cable like the Belkin AV22001-06 (list price $35, street price $15). There are other brands; for example, Monster cable has one. One end of this cable goes into the DV connector on your camcorder; the other (firewire) end plugs into a firewire port on the Mac.
In camera mode setting (round wheel) should be playback; "Card playback mode" for still photos or "Tape playback mode" for movies.
Since you have remove the battery from the camera to get at the connectors, you have to supply power to the camcorder via the DC cable that came with it. One end of this cable goes to the camcorder connector marked 7.9V DC, the other end is plugged into the side of the battery charger, which must be connected to 110-120 VAC with the power cord.
When you set things up as above and turn the camcorder on, iPhoto starts on the Mac if the camcorder mode is "Card playback" or iMovie starts if the mode is "Tape playback." These programs can download still images and movie clips from the Camcorder.
Setting the mode switch to PC mode and connecting the camera via a USB cable mounts the SD card (still photos) as an external device on the Mac. If you do this, you'll see a file structure like that shown on page 62 of the manual. I haven't experimented with this, but it could probably be useful if you have some application other than iPhoto or iMovie that needs to see the SD card this way.