1. It doesn't claim the methods, only the systems. My (dim) understanding is that this means it isn't a software patent (a "method" patent), it's just a patent on a "system" (e.g. a device) implementing those methods. If you want to claim the algorithm, you have to claim the methods too; these claims commonly mirror the claims for the system, but with the words "a method" generally replacing "a system".
2. A claim stakes out an area of ownership; the more "and"s there are, the narrower the claim, just like a SQL query returns fewer results with the more AND phrases you include in the WHERE clause. That first long claim (on which all the others are based) could be paraphrased as "Like Tivo, but with the user additionally being able to cut/copy/paste ('edit') sections of video, but only when there's a hard drive, and only when there's a CD burner, etc." So a system that omitted or replaced one of those components would not infringe the patent.
The other claims basically just preemptively stake out further sub-sections of the area of ownership so that the next guy to come along can't do what this guy did and just specialize/narrow/tweak the existing invention in those ways.
Although I don't think taking a Tivo and slapping a CD writer on it should be eligible for a patent. Especially if TV tuners where available at retail at the time (pretty sure they were, but I have no evidence of that.) Basically anybody that put a TV tuner into a computer with a CD writer is prior art for claim 1.
One embodiment of the invention includes an apparatus
equipped with a wireless keyboard and software that
enables a user to access the Web and email services
[…] and other functions