...on a budget.
Well, nothing is cheap, but I think my setup is about as budget conscience as it gets. If you want to eventually watch your recorded TV shows on anything other than your Mac, you will need a DVD burner. I bought the Pioneer 105 for $100, I think you can get the newer/faster 107 now for about the same. I also have the ADS-Tech USB DVD, cost was $175 from OWC. It records in mpeg2 in real time, which saves hours of rendering time over capturing in DV. The downside is , other than cutting out the commercials and trimming the beginning and end, you really can't edit it. So, it works fine for recording TV shows or converting VHS movies, but if you need real editing capability, forget it. I use Toast ($100) for burning DVDs, but the ADS-Tech device comes with licensed authoring/burning software.
HTH,
Chris