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My video camera came with DVD authoring software (ULead DVD Studio). Sure it's bundled with the camera so it's not really free, but it's not like I would have gotten a cheaper price without it.
I haven't made too many DVDs, but the times you give for making a 1-hour DVD sound about right using ULead (or Nero which is usually bundled with DVD+/-R drives). Just capture, select chapters, use a template to make the menus, test, then transcode the mpeg2 file to VOB and burn.
If you don't want to make a DVD, but a video for playback on your computer, WinXP comes with Movie Maker which does the above without chapters and transcoding for DVD burning. But I think you can make a DivX video for burning which some DVD players can play.
