Yes, you need a video capture device. Something like Dazzle Video Creator Platinum would probably do the job. It is a USB 2.0 device, which has a composite video input (RCA) and an S-Video Input socket. With luck your camcorder will have come with a lead which allows you to use either one of those types. Audio is via stereo RCA sockets.
Results from these devices can vary, though seems to have improved over the years. This Platinum edition has hardware encoding chips, which brings up the cost, but should mean less work for your computer to do whilst encoding the video.