Now with DVD-R here, it is now possible to put your video from your DV Camcorder on to DVD Disk at DVD quality.

As for VCD, it is fine when you want to fit your video on a CD-R Disk, but now with DVD-R you can do it in DVD quality.
Here's how I put Video from my DV Camcorder on to DVD.
The programs that I use are:
MGI Videowave 5 & Sonic My DVD & Uleed Videostudio 6
I have a Pioneer A-104 DVD R/RW.
Using the Firewire card that came free with my Canon 450 i Digital Camcorder.

The last DVD that I made, was of a wedding video that I filmed for a friend of mine, so I am going to use this as an example.
As usual I first made the folders that I was going to need. DV IN, DV OUT, MPEG 2 & DVD TEMP. I then captured all the 40 minute video in 4 stages to my DVD IN FOLDER using Videowave. I then edited out the Video and rendered two DVD-PAL Video files to my DV-OUT FOLDER.
Digital Photos.
At the wedding I tuck lots of photos also with my Digital Still Camera. So I used Uleed VideoStudio 6 and dragged all the photos in order to the storyboard, added a few transactions and rendered a third DVD-PAL file.
So with three Video files ready to burn to DVD, I first used the DVD making option in Videowave.
Dragging the three Video files to the DVD menu, PART 1, PART 2 and the ALBUM.
Layout View
I then created an other FOLDER called DVD DUMP and on the DVD-BURN options menu, set the options to use the DUMP FOLDER as the temp file for creating the DVD.
Then press BURN.

The DVD that I created played on every set top DVD player that I tried. And ending up with my friends Wedding Video & Album on DVD.
I then created the same DVD with Sonic MY DVD and again I ended up with a perfect DVD.