The acedvio card from canopus works fine over firewire with dvgrab. (A$500, though - they used
to make cheaper products.) The "--format dv2" option is a good choice. Grabbed video+audio in
DV format is excellent quality, but you need to allow space for about 12 Gbyes/hour captured.
Kino works ok to edit and convert to lower bitrate mpeg2 format for DVD.
I'll be interested to know how long the grumpy editor takes to edit his captured footage. I
believe the standard conversion factor is 1 hour of editing per minute of finished product.