Alright, looking at your last post, I am under the assumption that you're relatively new to this type of thing.
So to start, i would say this much. If you get yourself a DVD burner - the Sony for instance, it will come with adequate software to get you going. It's PERFECT for beginner/intermediate movie makers. I actually think that you will like it a lot better than the Windoze XP version that you currently have on your box.
http://www.sonystyle.com/is-bin/INTERSHOP.enfinity/eCS/Store/en/-/USD/SY_DisplayProductInformation-Start;sid=H0ypRBhwcVqpYSbN_KejT1d-KztbdKvqhCg=?CatalogCategoryID=KCwKC0%2eN_u8AAAD1tFrx3AxA&ProductID=Km0KC0%2eNb9cAAAD1lZjx3AxE&Dept=cpu
This is what I would recommend for a burner for you. It works with both DVD +/- R. Very nice and the bundled software will be perfect for you.
As for a capture card - http://mirror.ati.com/products/pc/aiw9700pro/index.html that's what I would go with if you have the money.
OR - There's also a TV Wonder PCI - but they appear to be missing that from their site at the moment, and it's probably 150 bucks.
The capture card, you will connect your VCR to it with the composite cables. Those are the RCA cables. You'll have the red/black/yellow for stereo audio and yellow for video.
If you wait six months, you'll probably be able to get a faster style burner than is available now, and maybe a better capture card, though you will always experience that. Technology increases at such a fast rate, if you wait for something better, you will always be waiting.
If you were to use the seperate video card, you would actually be removing your current video card, inside of your computer, and replacing it with the new one. More than likely it will go into your AGP port inside your box. Although if you go with a strictly capture card, then that will go into the PCI bus of your machine, again inside the box.
Mrafrohead