Hi mulder,
I too am a newbie to DV camcorder fun - should be getting my Panasonic NV-DS60 tomorrow hopefully at the bargain price of £229 from Berridge! Made my order before the price went up £50 :-)
I am reasonably familiar with making vcd's and suggest you look at
www.DVDRhelp.com
where you will find plenty of guides, free software, etc to convert anything to anything and burn to cd/dvd.
Probably you will need to work with your original DV in your video
editing suite and then convert with software like TMPEGenc and VirtualDub both of which are fantastic free software!
Take a look at the site it really is informative and exciting.
Good luck :-)
bazwaldo