I have a question because I am not so tech savvy...is it possible to take video footage from a Sony HD digital camera, that has video on it, which looks great by the way, and make a mini movie via editing? I am assuming it is, but want to know about how to go about it. Should I record vocals also on a back up audio as well and drop it over the video for better quality, or is that even possible?

It will transfer to your PC in "mini movie" format. The CD suppled with the Camera will have the transfer software (PMB) and a basic editing software package. More expensive packages will allow you to edit the audio tracks etc. Some freeware packages may also offer this, but you will have to research.

I am curious if I can make this look quite professional.

With practice, of course. Never work on the original, always make a copy and edit the copy.

There are many web sites and mags that are designed for beginners. The Sony site may well have good tutorials.

Of course it's possible, that's what video is for

You are working on a PC, so there is a myriad 'free' programs out there for you to test.

Sony Vegas and Pinnacle are two easy to use and accessible programs. They will be able to import straight from the camera and can edit HD content. As for a sound track, you can just layer a soundtrack (many if you like) over the movie content.

Be aware that HD files are big and if you apply any filters/effects, that they will need to be rendered and this can be quite expensive for the processor. Don't expect it to happen quickly, unless you've got a monster PC (or a Mac).

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you can use something basic like microsoft movie maker. but i would also second the recommendation for sony vegas which is also available in a very cheap version.