I started my adventures in video capture several years ago with the purchase of a Matrox Rainbow Runner package consisting of a Matrox Mystique video card with Rainbow Runner video capture daughter card and a tv tuner.
I constructed a system for the sole purpose of transfering my Dr. Who archives from VHS video tape to some digital storage format. My first generation video editing system consisted of a generic TX motherboard with an AMD K6/233 processor, 64 megabytes of ram, a quantum 1 gig hard drive for boot and a Maxtor 6 gig hard drive for video files. A Turtle Beach Montego sound card was used to capture the sound part of the video. The system worked ok for basic video capture and I was able to make a VCD from a 5 minute "StarGazer" clip. The results were completely unacceptable. Artifacts were very noticable and motion was jumpy. The conversion of the 5 minute clip from MJPEG to MPEG-1 ran overnight.
The following links may help you find information on making your own VCD and SVCD format CD's that will play on your settop DVD player.