On the PC side if your video card already has VIVO you can just use the freeware virtualdub to encode it to a bunch of formats. If you need a capture card, there are plenty of cheap PCI options ranging from $20-100. If you want to burn a VCD/SVCD out of it, Nero is probably the easiest burning software (or for a faster mpeg1/mpeg2 encoder that let's you fine tune the quality options to a very high level try TMPEG Enc Plus). It's all just drag and drop.
If you happen to have a DVD-RW in your PC, it probably came with Sonic MyDVD Plus 4.0, in which case you can plug in your video source (for example a DVcamcorder) and burn a VCD in realtime, bypassing the HDD.