First of all defrag the hardisk before capture.
Secondly, capture (via Firewire) in lossless DV-AVI format (your ULead software will be fine for this)
Thirdly set your Ulead project settings to Mpeg - DVD-NTSC and set the bit rate to Variable 8000Kbps (you will get about 60 mins to a DVD with this setting).
If you need a detailed walk through on the ULead settings please post back.
COMPAQ something or other with 500Gb Boot Disk, 1Tb external Firewire Disk, 4Gb Memory and a super duper sound card, 19" TFT Monitor etc etc etc
Sony TRV33e : Sony TRV310e : Canon XM2
Sony Vegas Studio editions to v11
Remember, there is always more to learn than there is to teach.