5 years ago, this was a real PITA, but nowadays it's pretty easy. If your PC is less than 2 years old, it should be plenty fast enough. You also need several gigabytes of hard disk space. I don't remember all the math for MPEG-2 (used by DVD's), but I want to say figure 200MB for 20 minutes of video/audio.
When you buy capture equipment, it's best to choose one with the "MPEG-2 hardware compression" on-board, which means the capture equipment does all the grunt work, while your PC just writes the output to disk.
Once you have the raw MPEG-2, then you get a program like Ulead DVD Author (something like this) which will allow you to create chapters, create an intro, and then burn the ready-to-go DVD.
Keep in mind that older DVD players can have problems with DVD-R (or DVD+R). You might get better compatibility if you use DVD-RW (the re-writeables).