I personally use iMovie and Final Cut on my Mac, but that isn't too much use to you.

My Dad is a fairly average PC user and has been using Pinnacle Studio 9 and then 10 to great effect for the past few years, it does everything you need but you'd have to check point 4.

From watching him use it I would say it's stable and easy to use. Capture is easy, you just play the whole tape in and it splits it automatically into scenes. The quality seems to be pretty good too, he tends to playback to his camcorder via firewire and then record to a DVD recorder, but this is more to do with his now very aged PC taking so long to encode DVD's from Pinnacle directly.

If you want a more solid package, with the ability to upskill later then you can't go wrong with http://www.adobe.com/ap/products/premiereel/ I guess.

Cheers

Cris.