As far as capturing goes, it depends on your capturing card. I have a Canopus ADVC-100 which is a DV capturing bridge and I use a free program called WinDV. For $40.00, there is a good program called Scenalyzer which can be used with it. I was using Virtual Dub to capture when I was using my GeForce4 Ti4200 as a capture card, but I was having audio sync issues. I believe that may have been due to my built in soundcard. I have since bought a soundcard, but I haven't tested my GeForce card with it to see the sync issue has been resolved. I have no sync issues using the ADVC-100, but there is a lot of debate about how good DV capturing is as it compresses 4:1:1.
I would really check out Video Help (formerly DVDRHelp). for more information on what to use.
Patrick