software :
-any new pc you buy from dell will have a free upgrade to windows vista(home or business), so this way you won't have to pay for Windows Vista when it comes out again. 2 birds with one stone.
-Vista comes with Windows DVD maker, so no need to pay for software to burn. It'll support DVD+R, DVD+RW, DVD-R, DVD-RW, and DVD-ROM so no need to worry about limitations. Also supports widescreen aspect ratio.
-Dells are customizable, get as much RAM as you can afford, 512 is min recommended for Vista. Vista is already slow, you won't like 512. Oh yeah, you can get a 19 inch flat with base purchases of dell pc's right now, starting at $400.
hardware:
-look for pc specifications to have DVD+RW, this means you can overwrite a DVD more than once
-look for DVD burner to have Single sided dual layered support, this will increase the amount of video time you can get per DVD, Single sided dual layered is approx 300 minutes, Single sided single layered is 150 minutes.
-make sure your video card has atleast 256MB (min recommended for vista), helps playback, but higher the better.
I'm not sure what the format of the source of your current home videos are, so depending on your answer, you may need more software.