Hello again. I am just going out but I will have a look on google later for the software you have and see what it can do.
I would try the windows movie maker first of all to capture 5 mins or so of video from the cam in AVI format. I can't remember what you need to click to get that setting but I imagine some options come up when you choose "capture video". Be prepared for large file sizes.
When you've done that, have a look at the file it's created and maybe have a play with the editing functions and cutting and adding a transition or two. This will just get you used to the software and help find your way around.
Should you get this work you are essentially ready to create your dvd, on a small scale anyway. This is where the after market software usually comes in.
DVD players recognise their own structure of folders and files. Authoring software creates these for you. You can do it yourself but from the posts I've seen on here, it seems a long winded process when you you just want to click a few buttons and let it get on with it.
I don't know for certain, but I believe that the free software everyone gets with cams doesn't usually have the ability to make mpeg2 files as payment is required for the use of that technology. As always, I stand to be corrected on that.
So the simplified process is roughly as follows, please feel free to correct or add to this everyone.
1 capture video to computer in AVI as it's best quality and easier to edit
2 when editing complete, convert AVI to mpeg2 dvd compliant video file. (Easiest with software for that will do both the above. Movie Maker doesn't make mpeg2 as far as I know.)
3 create dvd with burning software that has a menu maker and will also create the file structure for you. An example of which, Nero Vision Express.
I hope this helps more than it confuses! Post back and let us know how you get on and I will try and reply when I get back. If you find you need more software, don't get the credit card out just yet. There are trial versions available.
Cheers