Home movies using a D8 or Mini-DV camera or is it VHS-C, 8mm, or Hi-8?
Yes, you can do it under $1k, but not much under.
Upgrades, n order of preference:
160-200GB second HD (1 hr of video is 13GB - burning a project to DVD can use 8-12GB creating the files - so a 20GB HD does not cut it.)
At least 512MB of mem, but 1GB preferred
DVD-+RW Writer (many DV cameras will pass through video, so you can write back to tape or a VHS deck.)
Required:
Firewire - IEEE1394 (for DV) OR Analog capture card (VHS-C, 8mm, Hi-8) - Pinnacle has some good solutions that come with Studio 9, but do not get the USB version.
Speakers (audio on board should be good enough)