I have the same camera. I bought it two weeks ago. I read somewhere that you can just copy the data using any method that you can, ie, a card reader, then change the file extensions to .mpg. That worked for me.
I actually have just been using iMovie to import the video, without doing anything fancy, then edit a little bit using the transitions and titles. Then I share it to iDVD or better yet, Toast to burn it.
I find that using the iMovie/iDVD combo could be much easier. I also don't like to use the themes that iDVD uses. Why can't I just use a blank theme? C'mon Apple! It seems sorta silly to use the fancy title themes, then just cut to the video that I took.
By the way, the features of the camera are great, such as size, simplicity and the complete lack of tape. The drawbacks are the picture quality. I'd give it a 3 out of 5 stars. Also, the default settings aren't the best. I change 3 setting EVERY time that I start recording. That's a pain. Maybe there's a way to change the defaults but I can't find that option.
I actually am looking for one to replace it, but I'm in no hurry, since the features offset the drawbacks.