I have a digital camcorder and a Dazzle video capture device. (I am a
PC video newbie, so bear with me). Have a new Dell 8250 system with
suficient specs to handle video. Software is basic, but I have been
able to get video from the camera to the PC, (but without audio) where
it is saved as .m2v. I have been able to burn DVDs successfully of the
movies, and ,ake VHS cassettes, but alas, what I haven't been able to
do is make simple little AVI clips or MOV (Quicktime) so that I can
send clips over the internet.

How can I convert the .m2v files to AVI and/or MOV?

Also, I was wondering: if I manage to get the audio connected from the
cam to the PC, would the Dazzle software automatically make full .mpeg
files, which could then be easily converted to AVI or MOV?

I jsut want to be able to send clips online that other people can view
without DVD players or installing a lotta fancy software.

your best bet is to take a look at www.vcdhelp.com, as it has thorough
guides to all sorts of video editing questions regarding file format
conversion, video editing "newbie" help, as well as more advanced
how-tos. If I remember correctly they even have a guide on using the
dazzle capture device (along with several others).