Any miniDV camera by Sony works well, but many other brands too. Can't advise you on the best, depends on the features you want and budget. Go for a brand with a good lens and the largest optical zoom range you can afford. Try out a lot of them and see what feels comfortable for you.
Is your computer Mac or PC? Do you already own editing software? Can vouch for iMovie which comes free with the Mac but I've never used the Windows equivalent (MovieMaker, I believe it's called).
Again, a mac comes with iDVD which is the most idiot-proof DVD creation software around.
If you have a miniDV camcorder you can't burn a DVD straight from it, you need to capture the video to the computer, transcode it to mpeg (the DVD picuture format) and then burn the disc. Your DVD creation software can more or less automate much of this process but you will find you need to experiment with settings to get best results. You learn by doing, really.