What capturing setting should I use in order to get the best quality and also burn in DVD format? I used the recommended Windows Movie Maker format which was WMA but my DVD tools didnt accept it.

Any ideas?

You need to stick with original format i.e. DV (AVI) to edit, render & burn to DVD. Files will be considerably bigger than WMA/WMV but will retain original quality. Your DVD software should be able to compress files for burning to disc if they're too big.

Thanks nobby, I did notice the DV (AVI) setting but wasn't sure.