You need a capture and editing programme, if you have Windows XP you will have Windows MovieMaker, check your PC if you have version 1 you need to upgrade to version 2, you can do this for FREE by going to the Microsoft website and downloading it.
Unfortunately MovieMaker 2 will not create SVCD's or DVD's so you need an encoder and CD burning package, try TMPGenc for encoding and Nero for burning.
To burn SVCD's you will need a CD burner and to burn DVD's you will need a DVD burner. *Most* DVD burners will burn CD's but not the other way round.
If you prefer one programme to capture, edit and burn your SVCD/DVD have a look at Ulead VideoStudio 7, a free trial download is available at
www.ulead.co.uk
you will also need to increase your hard drive size either by adding a second internal drive or by an external USB/firewire drive