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I'm not sure there is a rough calculation I'm afraid, with so many variables with the PC, the encoding software, and what settings you use. I'm guessing the 16-20 hours you've heard are for slower/older computers - yours should do it in a reasonable time, although 512MB RAM will obviously be a fair bit slower for the encoding than 1GB...?
There again, if yours takes say 4-5 hours for 1 hour at one pass, then if you wanted to put a whole 2 hours onto a DVD, with 2-pass encode, you're then looking at the 16-20 hours. Personally, I tend to stick with 1 - 1 1/2 hours per disc, and only use 1-pass CBR (unless it's getting a bit tight for space). And whatever time it takes, remember to add on another 20-30 minutes for the authoring (compiling the files to make a "proper" DVD and adding menus etc) and actually burning the disc.
Do you know anyone with a DV camcorder who could put a few minutes of DV video onto your PC, and then you could try out one of the bits of software* that's available as a free trial to see what you make of the quality of the encoding and how long it takes per 5 minutes say (and just factor it up)?
(* editing prog like Adobe Premiere Elements, Sony Vegas Movie Studio or Ulead Video Studio etc etc, or encoding/authoring prog like Pegasys TMPGenc or Ulead DVD Movie Factory etc)
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