Hi arvind and welcome.

All the software supplied with your camcorder is not compatible with Windows 7.

You should be able to transfer video to your PC using an iLink (firewire) cable.  This transfers the video in a digital format which your PC can import direct.  You can import/view/edit/burn the video in Windows Movie Maker.

http://www.amazon.co.uk/Ex-Pro-Professional-Firewire-IEEE1394-Standard/dp/B002AHOFY8/ref=sr_1_17?s=computers&ie=UTF8&qid=1334013374&sr=1-17

Alternatively, you can output your video in analogue format but you will probably need a hardware video converter to change the format to the digital signal your PC understands.  I would only try this if you cannot get the iLink connection to work as quality will be lost in converting digital to analogue to digital.