if you have older computer, Pinnacle or Dazzle will be the best choice. they will provide basic editing software..
if you have newer computer with firewire(ieee1394) port , simply edit with "windows moviie maker" by connecting your camcorder's firewire jack.
you dont need to spend any money in this way.
you can possibly use "adobe premier" for better quality, however, it would cost too much for the software.
after you convert your video into file(.wmd or .avi), burn dvd with "nero burning rom". select " DVD vieo" in the menu. when you purchase blank dvd i strongly recommend "DVD-R". it wil run in any kind of dvd player.
dont forget to keep original tape. burned dvd or cd wouldnt last long. i lost my homemade **rn files in 5 years eventhough i used best quality blank media.