"1) is it possible to remove 1 chapter from a dvd, such as an included music video (i know what vob its in) and burn that to its own dvd, something simple that has no menu is fine. If so where can i find a simple tutorial that would help with this (i didnt see one that really applied on doom9)"

DVDShrink will do precisely that. I highly recommend it.

"2) and how easy is it to make your own dvd from a capture video. Obviously the more correcting/editing you do to the picture the more work is involved, but what about transfering home movies to dvd. what kind of software do i need (preferably free versions) and whats a good tutorial to look at (a specific 1 or 2 on doom9, would be more helpful than just a 'check doom9)."

Sony Vegas isn't free, but there's a 30-day trial (let me know if you want to use it beyond that.) It can capture video, and it's really easy to edit the video, especially several segments (if you have a digital camcorder, it will control the entire capture process, and save each segment individually.) I use DVDLabPro for mastering menus (you can get a Beta with a 30-day trial as well.), and then Nero to burn my files to DVD.

As for capture cards, I love my WinTVGO model 90 for $40 bucks, but it didn't shine until I found third-party drivers.