Asuming you're capturing DV quality video, but this works for tapes as well, just the quality won't be as good:
1. Capture using Scenalyzer into raw uncompressed type 2 .AVI. Bear in mind that 2 hours of uncompressed .AVI is good for about a 20 gig file. So make sure your drive is formatted in NTFS as there's no file size limit. FAT32 has a 4GB limit.
or
If you are using a capture card then you can capture using VirtualDub. I use Scenalyzer because it will recognize a firewire input - VirtualDub will not. I capture through my camcorder using firewire.
2. Rip the audio out of the .AVI file using VirtualDub into .WAV format.
3. Convert the .WAV format into DVD compliant .AC3 audio using FFMPEGGUI.
4. Compute the necessary bitrate using a bitrate calculator - I use CCEGuesser.
5. Encode the original .AVI (video only) into DVD compliant MPEG2 format using either TMPGEnc or Cinema Craft Encoder (CCE). I prefer CCE because it's like twice as fast as TMPGEnc and a lot of people feel it gives better DVD results. TMPGEnc is better for SVCDs. This is of course using multipass variable bitrate encoding. Oh, and I use AVISynth to frameserve the AVI to CCE as it has a problem with large files. AVISynth is a whole game in itself - you wouldn't believe what you can do with it (add filters etc...which you can use to "clean up" your video)
6. Finally use TMPGEnc DVD Author to author the DVD. Which means putting the MPEG2 video file and the AC3 audio file back together and then encrypting it back into DVD format and burning it to disc. You can also do some editing at this point.
Yes, there are a lot of steps. The longest by far being the encoding process. I usually let my PC do it overnight.
But, this is a very good method. It will give you far better results than any one "all in one" DVD authoring program. By a long shot.
And none of these programs will cost more than $30 or $40. Some are even freeware.
DVDRHelp
and
Doom9
has all the info and FAQ's you'll ever need.