We use a VITEC card to do our capturing, straight to MPEG2. We typically encode 720x480 VBR 4500-6000 KBps. Gives you about 2 hrs per 4.5 GB disc. If it goes over, you can always DVD Shrink it once you've got it in VOB format.

For editing, we use VideoReDo. Fast, accurate, and easy-to-use.

For DVD authoring, it's dvdauthor all the way. It's free, bit of a learning curve, but you have full control. However, there are a number of dvdauthor GUI's that make it a snap to use.

Good luck!