I use Cyberlink's Power Director Pro to take the raw video, break it up into scenes, adjust the color, make the video darker or lighter or even add background music. The program allows you to insert "pickup" shots that can show transitions from one location to another. You can even video your own commercials, add commentary, you name it. And the list of special effects are astounding. You will need a newer computer for the software to work effectively. It will work on older machines but may take a lot longer to process a scene. I run a 64 bit cpu and it grinds out the video very nicely, as will those spiffy new double core processors. Having a decent amount of memory is nice too, about 1 gig of dram on the motherboard is ok.
When it comes to burning a disk, you can burn it to a dvd as another poster mentioned or a video CD if you have a cd burner. The video cd is a format supported by virtually all dvd players. And blank cd's are A LOT cheaper than blank DVD media.