windows dvd maker

I just installed DVD maker because MOVIE MAKER does not burn to dvd. I bought a simple a/v capture device that is usb powered. I do not know if this has any software included or if it is designed to be used with an existing software like DVD MAKER. The interface has a "ADD VIDEOS" tab. When I opened this tab the expected error appeared, "NO CAPTURE DEVICE DETECTED". Once the device is connected, cd run, will XP DETECT it, send it to the MAKER so it will appear in the ADD VIDEOS tab/ Hoe and where do I send the videos that the device captures from a vcr, dvd player ect so the ADD tab can find them? Can I choose to burn them, save them to the hhd, which I would not like to do, or if the MAKER insists save them to the hhd, burn them, then delete them from the hhd. I do not need them on both. Also my usb ports are 1.1. Will 2.0 devices work? Or do I need to upgrade to 2.0? If yes how? None of my existing devices, printers, ect, seem to care. All advice welcome.