pennuk: There are certainly lots of options in terms of products, but blkj has summed it up well. The process is:
1) capture and edit orig footage
2) convert the resulting AVI to MPEG2 (req'd for DVD authoring)
3) Use the MPEG2 to "author" a DVD (the process of creating menu's, chapter points etc and finally creating .VOB files in the AUDIO_TS and VIDEO_TS file structure)
You're off to a great start with the ADVD110 for capturing (I've used the ADVC100 for a long time now).
The only change I would suggest to blkj's process is to *not* use the divx codec. From what I understand, the divx codec is primarily for movies to be viewed on PC only - not for a DVD you plan to watch on a TV. I suspect this is the reason for lesser quality results. It would also be best to simply eliminate this extra step in the encoding process.
I'd suggest to try to go directly from Premiere to TMPGEnc...
1) export from Premiere as an uncompressed AVI (again using TMPGEnc to get an MPEG2 is already encoding the clip...try not to do it twice). This takes a lot of time and diskspace.
2) Use a Frameserver (search in this forum - I've explained it before). The frameserver utility allows export from Prem directly into TMPGEnc, avoiding the need for exporting before encoding.
3) Bite the bullet, and jump to a product like Canopus Procoder (as a Premiere export) for encoding to MPEG2. Unfortunately, it's pricey.
Hope this helps
...Rob