Use Windows Movie Maker to capture your footage as an .avi file which is pretty much the best quality you can get from a MiniDV tape (unless you capture you footage as DV-AVI).
WMM is a simple programme for editing etc. and extremely easy to learn. Alternatively, download the trials for either Adobe Premiere CS3 or Sony Vegas from their websites to create the vide with a bit more professionalism.
In terms of DVD authoring...there is a lot of software out there. If you have Vista then use Windows DVD maker which makes quite nice DVD's with menus, background audio etc. Your PC probably came with DVD authoring software.

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