1) I have used Ulead Video Studio for years. It does what I need and works well for me. (I've never used Vegas, so I cannot offer any comparison.... sorry.)

2) For WMV to DVD, I have used Movie Maker to convert to DV-AVI, then Ulead Video Studio to convert to MPEG-2, then Ulead DVD Movie Factory to create the DVD. (Video Studio will make DVDs, but Movie Factory gives more options.) If Vegas supports AVI and makes DVD, you could do the same. (Of course, the better quality the original, the better the final DVD quality. Converting a low-quality WMV file to DV-AVI will give you a low-quality AVI file, even though it's large, so start with the best quality file you have.)