Best bet: get a Creative Audigy Platinum sound/video system ($200 retail). It has S-Video inputs and presumably has video capture software. There are other S-Video cards that might be cheaper.
There are programs that will create video disks on standard CD-ROMS. A DVD burner will set you back $800 or more. You will need video editing software Make sure your hardware comes with it or be prepared to shell out a bundle for Adobe Premier or equivalent.