Yes I bet you can.
I don't have any experience with that specific camera, but because it has a firewire port and analog IN-OUT, you can use the camera as a bridge to convert on-the-fly the signal from your VHS player.
I did this quite few times in FCP, but I think iMovie will do it as well, even QT pro. The process will be in real-time, meaning you press play on VHS and press Record in the sofware you choose to capture right to your hard drive.
Once as digital movie, you can use pretty much any DVD authoring solution out there to create your DVD (iDVD, DVD Studio Pro, Toast....)