Is mine D10 powerfull enough to do video editing ?

Goodmorning all,
Not sure if I may post this on this forum. If not, then remove it.
Here i go.
At the moment i have an D10 6493 (quad core 2.5). 4gb memory. 
having 4 disks inside. 1 seperate  boot disk  and 3 in a stripe set for performance. This stripe set data is backup daily to an external disk.
The D10 has the standard video card  quadro fx 1700. further an blu-ray burner and regular dvd burner.
With this system i did some basic video editing tasks. Now i want to do something more with video editing. Still not proffesional, just a hobby.  I bought some books to make better movies.
I want to buy an Panasonic HDC 700SD, im not going to edit in the highest quality mode, since our tv set is not 1080p. (its 1080i)
But i want to make sure that this system is capable to do this task. before i buy this camera. 
I dont have the budget to buy a new system.  The system is only 2 years old.
People telling me : you need atleast a I7 processor. But i think thats more marketing. they tell me this, before i even say in wich quality im going to edit.
Just want to hear your oppinion.
the movies are for my own, watch them on our tv. And not to sell. Just want to extend my hobby a little.
Thanks for your opinion.
My english is not that good.

I agree with erik, Everything seems to be fine except the ram. You will need more for editing. Another thing to consider is how much memory does your GPU have? You may need more than the 512mb that it has. Here are some reviews for that GPU...
http://www.newegg.com/Product/Product.aspx?Item=N82E16814133207&Tpk=FX1700
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