Now with the Xmas rebates, you can get one of these for like $120 (the 9000 model).
The only reason I mention this is because the capture utilities have features to clean up old video, called VideoSoap.
That, and the capture can capture at DVD-level resolutions, and hardly takes up any CPU for post-processing.
I've used this as a digital VCR, and to also capture from videotape. Since it's working mostly on-chip, it's FAST.
And yes, you can burn the MPEG from there to DVD using any Video CD publishing tool

.