Capture settings for DVD?

I need someone with more experience than me to suggest capture settings that
will translate into DVD with an acceptable video and audio quality. At the
moment if I capture using Ulead Studio and my G450 eTV in any mpg format,
when I write it do
DVD the video and audio quality is terrible. I have used both the HP DVD
authoring software and Nero VisonExpress.
I have:
- AMD Athlon XP 1.7gig CPU
- 512 MB RAM
- 80 gig HDD
- Matrox Marvel G450 eTV
- HP DVD 300i writer.
- PAL region.
Thanks for your help
Mike