Well then, there's the piece of hardware you need. :) All my relatives were taking their VHS home movies and putting them on DVD, the editing software that came with the DVD recorder allowed them to add special effects, captions, sound effects, etc.
They were also able to improve the images, take out the grainy look, red eye and a bunch of other time consuming things.
I prefer internal. The Sony DRU-500A works quite well with WinDVD. The internal/external arguments are more a matter of taste than anything. :) Unless you have more than one PC you want to burn DVDs on, then I'd probably go with external.