If they are homemade video's then Ulead Videostudio will be the best for capturing and editing. I suggest you to capture directly to MPEG-1/MPEG-2 with an optimal bitrate of 5000 - 6000 kbps for MPEG-2. Ulead VideoStudio with its smart render option doesnt reencode video that already confirms to current project settings and hence further loss in quality is prevented.
Even video capture works well on Low end systems because it captures video to buffer and flushes it frequently. I never had dropped frames with videostudio.
Premiere is a good tool but it is not a native MPEG editor. It means you have to convert your movie to AVI to edit it in premiere. This consumes a lot of time. But Premiere supports MPEG editing with Mainconcept MPEG plugin.
Personally i have tried all the three products-Pinnacle (now using studio 9.4.3), Premiere and Ulead and i find studio to be the simplest one. Moreover it gives superb quality if u want to convert them to DVD.
I also think premiere is really good with lots of features but the problem is that it is really difficult to get familiar with the features and it is resource hungry.
Of course its purely my point of view. nways hope it helps u out with yur desicion problem.
What about output quality with respect to system configuration? Is it that the final output will be better if one has a good graphics card installed in his/her machine than one with a normal graphics card that generally is inbuilt in the motherboard.
your MPEG-2 file should be converted to dvd compliant files b4 burning it to a dvd.
for this you can use ulead DVD workshop / adobe encore dvd.
But i would suggest you to go for DVD lab (basic version is cheap and good enough. havent tested the pro ver though) @ www.mediachance.com
I have already made 5 - 6 dvd's using DVD lab. and it is a very nice application. It accepts only dvd compliant movie mpg files and compiles a dvd in ~30 minutes. you can put even 3-4 vcd movies on a dvd