I have the same capture card and I'm pretty happy with it for the price!
I actually use a program by Intervideo called WinDVR 3 to capture in Mpeg II - Best quality. Although the files are bigger I find I have less problems later on with the captured file.
I then use TMPGenc DVD author to convert to VOB. It also allows you to create some basic menus. Very good program - fairly simple to use. I haven't bothered with anything from Ulead since Tmpgenc.
Finally shoot across to this site and it will give you some handy pointers on conversion, authoring etc.
www.videohelp.com
Good luck