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Well, there are many software programs out there to do this. It really depends on what you want to do AFTER you capture the video that will determine the program to use. Also, how serious are you in doing this? Occasional home user, moderate use/hobby, or professional will also dictate your choice.
If just for transferring a few old videos to DVD, and you don't care much about fancy menus or super editing power, then most cheap video programs should do fine or the generic "video to DVD" wizard oriented programs like Ulead Movie Factory. Most programs will allow you to suck in video via a capture source (graphics card or firewire port), do some minor editing (if any), attach some canned DVD menus on, and barf out a DVD for you. Nice approach for non-serious, occasional or newbie users.
The mid-range (what I do mostly) takes advantage of more expensive, but more flexible software that allow more advanced editing, transitions, effects, etc. You might even take advantange of a few different programs to get the most flexibility for a moderate price. I'm using Pinnacle Studio 8.10.4 which runs about $70-$100. I've also heard Dazzle's DVD Complete works well also and is about the same cost.
Prosumer or hobbiest level stuff would be almost professional or low cost professional software that does an excellent job but is just too expensive for the casual video editor. I put Pinnacle's Edition, Adobe Premeir, and Vegas in this category. Price range is $250 to $600 for software packages.
More Advanced, expert, or professions work in a completely different level of software and price range. Often the different parts of the process are divided into different, and expensive speciality programs that really shine in their area of excellence. Pros will spend crazy money to have the best, which is fine, considering most do this for a living.
That was probably more that you cared to know, but a good overview. I do like your approach for getting analog video in to the computer. I also have a camcorder that I can use this way -- it sorta acts as an analog-to-digital converter.
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