experience is shared by many.

Since we don't know what you are using to burn the DVD, it is challenging to understand what is happening, but my guess is that the camcorder hard drive files are merely being copied across and compressed into VOB files. This "tool" is provided so yu can offload the camcorder's hard drive - making space available for more video.

As you have learned, recording start+stop = a file. (And there is no "pause" while recording.) In order to make one long continuous file, it would be best to use a video editor. All the files come over form the camcorder, get them into the video editor (more on this in a moment), delete the clips you don't want, edit the not so good parts out, get all the "acceptable" video onto the time line, add transitions, credits, special effects... save as or export... this will give you the single file you are looking for.

There is no software included in the box with any consumer camcorder that is worth installing on your computer.

The Panasonic SDR-H200 is a standard definition video consumer-grade camcorder that records to highly compressed MPEG2 files. I *think* they are stored as .MOD files on the camcorder.

Some will say that all you need to do is change the extension. I don't think this works consistently. There are a few video file converts out there.

StreamClip
http://www.squared5.com/
can do the conversion. As well, I don't know if the DV widescreen issue experienced by JVC hard disc drive camcorders using the similar .MOD files exists - of if you are even using DV widescreen, but one of our regular posters here ("Sektionschef") has a great tool for working through a known issue:
http://forums.cnet.com/5208-7594_102-0.html?threadID=342318&tag=forums06;forum-threads

Anyway, StreamClip (among many other video converter/utilites) can convert the MOD files to a format MovieMaker (WMV) or iMovie (MOV or MP4) or any other half decent video editor can deal with.

No, I do not use a Panasonic SDR-H200. No, I do not use Windows or Vista. If you need additional assistance beyond this, perhaps someone else can jump in.