M8 for capturing i would use nerovision , i think its part of the nero dvd/cd write package or movie maker 2 if you have window xp.
For the editing, adding effects i really like adobe after effects v7, it doesnt capture footage though.
Most programs that do everything usually do them poorly. What i suggest is you use something like adobe after effects to do your effects and export to avi file after its finished. Then use a class encoder to turn the avi to mpeg2 file. There are only three or four worthwhile, Tpmgenc express, canopus procoder v2 and the best and fastest ive tried cinema craft sp 2.7.
To turn your mpeg2 to dvd files you need something like tmpgenc authoring v1.6, its easy fast and also does great menus. It has a writing program as well.
Cinema craft is very expensive and hard to use, canopus is easy to use and less expensive but only 2 pass vbr. while cce has up to 99! tmpgenc express is the cheapest with good results but very slow at best quality. You could go the P2P way though.
One last thing if you use cinema craft go into the settings and change the quantization matrix with numbers on a fox dvd. This really brings out the clearest picture. If you do a google youll find the numbers to use.
good luck