As stated over the course of this thread, the simplest way to accomplish what you want is probably:
1. Buy a capture card (you can get basic ones <50, slightly more robust packages like say, the 9600 AIW for <100)
2. Get the appropriate cabling (generally, RCA or SVIDEO cables)
3. Get some software of some sort (if you get the 9600 AIW then it will come with some software ... i dont personally reccomend that software but its software nonetheless). Otherwise, a fiarly robust and simple (and FREE) application u can use to do video capture is
VirtualDub
4. Capture the video to the drive either in RAW or encoded format (i would reccmend MPEG4 for now ... its a bit more work later but you're getting the most effective use of your space and at a fairly decent speed, capturing with MPEG1/2 can be gittery)
5. Regardless of what format you used to record in step4, use something like
TMGPEnc (free version!) to encode to a DVD
6. Now that you have the MPG/MPA+MPV files you can author them using something like
DVDLab (free trial)
7. When thats done, use something like Nero to burn it as a DVDVideo and yer done