The ATI radeon AIW is ok for video capturing but not the greatest, & support for winXP isn't good at all. Another thing to note is that there is no technology today to help you capture DVD in real time. Computers are still too slow (I would say you need around 4Ghz PC or more to do realtime).
However, as that crazy woodpecker mentioned =), using ChickenMan's tutorials on ripping DVDs will give you the best results. Ripping it to the HDD will only take about 5-15 minutes (or 1 hour if you have an old 3x DVD rom drive) with modern DVD-ROM drives.
Then the only long process is encoding the movie to VCD or SVCD. On average an athlonXP 1800 will take about 3:30-4 hours to encode 1:35 hour movie to VCD standard mpg, while an intel P4 2G will take about 4hours. Add more time for slower systems (about 10 hours on a P3 733), & add double the time or so to make SVCD.
Have no idea about DVD to DVD (first part is the same *ripping) but then use elpresidente' tuts on that.
Good luck & there are plenty of people here to help you along your way (but the tuts are straight forward & easy, provided you read them carefully).