Try looking at the "Guides" tab at the top of this page.
Do NOT use Windows Movie Maker if you're planning to make a DVD. It does not capture at a high enough quality. You will need to separately capture, encode, and author.
Some programs allow an all-in-one solution such as Pinncle Studio and Ulead Video Studio (to name a few). Sometimes, these programs come packaged with your video camcorder.
If you want, you can find trial versions at each respective program's website.
WMM "encoded" to .wmx or .vob. The built-in encoder in WMM is crap and you've lost quality immediately. You can't "bring back" the quality through further conversion.
vob files are dvd-ready files. It's probably about the best you're going to get without re-capturing all your footage again. You're going to have to author the vob's into a DVD-compliant format.
If you're not sure, there should be .ifo, .bup, and .vob files. If you don't see these, then you need to author.
