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.
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.