I'd say, a decent capture card, ~50Gb of free space, time and patience.
Decent capture card: Leadtek WinFast TV2000 XP
Record in a lossless format such as HuffYUV, Lagarith or MSU.
Use Avisynth and additional plugins if needed (freeware) and do proper adjustments to the source, remove noise, bad cuts etc and use TMPGEnc (free trial version) or CCE to encode into MPEG-2. Use TMPGEnc Author as mentioned above or
DVDLab to author the DVD.
//Danne