I've struggled with this for a couple of years. Unless your camcorder comes with software such as the sony handycam it can be a bit confusing. Used to use Nero which more often than not gave unpredictable results.
Now I use Ulead video studio (around about �55) Never had a coaster (useless disc) and it's very straightforward. You can just connect the camera to your computer via firewire or composite (yellow, red and white cable) then the software will capture the video onto the computer's hard drive. It will also detect every time the video was stopped/started and create that as an individual video file on your computer. Then you just add the files to your disc, edit with the software then burn to disc.
The videostudio will accept hi def video from the newer cameras too and with version 11.5 you can burn an AVCHD disc onto a normal DVD which will show enhanced quality video on a playstation 3.
Course you can source free software online but it can be buggy and you need to find codecs etc. But it's the easiest way in my humble opinion.