In broad terms,

1. Capture your VHS footage in lossless AVI

2. Edit, add title music etc if necessary.

3. Encode to DVD COmplaint MPEG at teh highest possible rate. FOR example 8000Kbps will give about an hour of footage on a single layer DVD.

4. Author your DVD and burn.

Chek your software for correct settings.

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IBM A51p with 160Gb Boot Disk, 160Gb external Firewire Disk, 2Gb Memory and a super duper sound card, 17\" TFT Monitor etc etc etc
Sony TRV33e : Sony TRV310e : Canon XM2
ULead products mostly including Mediastudio Pro (V8.0), Video Studio 8, Movie Factory 2.0, Premiere Elements

Remember, there is always more to learn than there is to teach.