The DV camera captures in DV format, which is held in an AVI file. It would be best to TRANSFER ("capture" is a misnomer) the DV footage to the PC through the IEEE1394/FireWire input with transfer software. It is not MPEG.
I still use S-VHS for my sparse shooting, and don't use DV because of it (no real need). I hear that SCENALYZER LIVE is a great piece of software to use for this. For transferring DV, I'd visit the DV forum at VideoHelp.com and read past posts from other users.
You cannot tweak the DV data at transfer.
HOWEVER, that being said, it is possible to connect a DV device to MainConcept
1.4 encoder, and the "capture" or convert the incoming DV data to a new MPEG-2 format file. Only do this if the DV is intended for straight conversion (no advanced editing in Premiere/Vegas). I'm still toying with that software and making a guide for it. It's testy little software, as fickle as a high school girl when it comes to dropping frames.