I've been looking at some videos online and I see that people are able to take them and add in text, effects between shots, etc. and in general edit what they film rather than using it directly from the camera? How is this achieved? Will I need special software?

Hey moviedude! It sounds like you a NEWmoviedude... that's cool.

The best way to get started with doing some simple editing stuff is to buy a product like Adobe Premiere Elements. This runs less than $100 and it offers everything you need to make a great movie, whether it's a home movie or something a bit deeper. The great thing about these digital programs, (Adobe, Final Cut HD, iMovie, even Windows Movie Maker), is that they provide text effects, transitions, tools for audio work, and some even provide the means for special effects. Basically, for less than $100 you can get a software that will get you started and still support you when you become more advanced in the craft.
After you get the software, all you need is your MiniDV camera and a firewire cable and you're all set. Or, you can even use a still camera with video recording capabilities and a memory stick if you're just trying to test the waters a bit.

I hope this helps, and good luck making some movies!