This information is from a friend who already edits videos onto DVD's. He says you need to use a DV camera, which will use firewire / IEEE1394 connection to the PC. The S/W will be able to record direct from the camera source onto the HD for editing or straight onto DVD.
Camcorder should have a mains lead for work indoors.
The Pinncacle Studio software isn't too bad
look here its about £62 from Dabs
You can also look at
Serif Movieplus
Edited to add a good place to look would be
DVspot news and reviews
If I come across any more info I will post it.