MiniDV is the format you want. Also, if you have some money to spend on the project, get yourself a Powermac G4 or G5 and a copy of Final Cut. If its a PC you can use Adobe Premier, which isn't as good as Final Cut but doesn't require you to buy a new computer.

If you get a Mac you can use iMovie to make a DVD and its a breeze. I'm not sure whats available for PC.