You need an internal capture card, or an external capture device. Look for products and information here: http://www.hauppauge.com/
Video device (cam, camcorder, etc.) ---> Capture Card ---> Save to HDD. After that, use Windows 'Movie Maker' or 'ULead DVD Factory' program to edit. Save as video file or burn to DVDs.
I use Hauppauge HVR-1950 and re-writable DVDs to do this. Sometimes, I just edit and save it to a HDD (the video files are large).