MiniDV camcorders can sometimes be found at thrift stores for under $10. Otherwise, there's pawn shops and of course online ads, yard sales, flea markets... The way to transfer the video to a computer is through a Firewire connection, so you may need to find an older laptop or desktop with such a port. It'll be labeled something like 1394, or Sony i-Link. There are/were also PCI cards, and sound cards with 1394 ports; a computer recycler like Freegeek should have something like that.
WinDV is a program that can be used to capture the video on the computer, if you're doing this on a computer that doesn't have video editing software already. Older (if not ancient) versions of Pinnacle Studio (for example) should be just fine for capture, editing, and creating and burning a DVD.