There are many ways and many variables. First, old USB (1.1) will not capture quality video. USB 2 will, but if you don't already have that, I'd recommend an IEEE 1394 ("firewire") port for the best video. You'll have to install one if you don't have one.
Whether your Dazzle software will work or not will require some testing, but I'm guessing you'll want (or need) newer software if you plan to do a lot of this.
Movie Maker should work all right, once it finds the port where the video is coming in and recognizes your device. However, Movie Maker will not make DVDs. If you plan to use Movie Maker to edit video for DVD, make sure you save the final video in DV-AVI format. Once you've done that, all you will need is DVD authoring software to do the rest.
See my own methods here:
Using Win xp home, sp2.
I have absolutely no experience with Dazzle or anything to do with copying VHS to DVD
I have a 2 year old version of Dazzle Fusion. This is the low priced version, with only one video in, S-videro in, L&R Audio in and a power port. It has a USB cable to connect to my computer. Also input ports for 3 different size of memory (?) chips.
My question... will this work with MS Movie Maker?
I have software that came with Dazzle (Movie Star 5), but wonder if MS Movie Maker being newer, would work better?
Any advice appreciated.
Happy New Year