The simplest way to get the video off of the memory card is to buy a card reader for your computer.
The cost is under $20 and they are available at any store that sells digital cameras.

For displaying still photos and video (mixed) is with a slide show program.
Then burn the slide show to a DVD.

The slideshow program will let you add captions, foreground sound, and background sound.
To add a video clip, you just drop it into the slide show as if it were a slide.
So you can intermix video clips and slides.

I have been using ProShow Gold by Photodex.
It lets you control how long each photo is shown on the screen and it lets you fade from one slide to the next (called a transition).
It has the "Ken Burns" feature that lets you pan across a photo or zoom into a picture. That adds life to still pictures.

You have total control of any background music.
You can transition from one song to the next with no delay, or you can overlap the ending song with the starting song.
If you want to do a narration, the background music continues, and you can lower the volume of the background music if you care to.

The program will let you output to DVD or just a computer file.
You can also produce a Blu-Ray DVD if you have a Blu-Ray burner on your computer.