Probably the easiest solution is to buy an all-in-one VCR/DVD burner. An Amazon search seems to suggest you can pick one up from a variety of vendors. In "refurbished" condition, you may only pay $140.

Some digital video cameras have audio/video in, others don't. In this world of cost-cutting, you're probably not going to get much love going that route.

Finally, you might ask around if you've got any buddies with one of these new hard disk video cameras, which tend to have corresponding customized DVD burner attachments that connect via USB. My wife, for work, needs to be able to make lots of recordings and quickly burn them to DVDs (taping people giving practice talks, then they go off and watch themselves). We ended up settling on a Sony HDD camera and Sony's "DVD Direct" gadget (~$150). You could easily hook this up to the output of a VCR and use it to burn DVDs. It can even deal comfortably with multi-session (each time you hit "record", you get a new session, and it sorts out the title screen menus at the very end).

I don't think I could ever recommend you buy a special purpose gadget like this, but if the only choice is buying some wacky video-in card and spending hours of your time trying to make all the software play nicely, then the special purpose gadget starts looking more attractive.

(Annoyance: A friend has a JVC HDD video camera. We tried plugging it into our Sony DVD burner gadget. Of course, it didn't work. JVC happily offers its own proprietary DVD burner. *sigh*)