Just run into this problem today at school and it is driving me nuts. Definitely not my area of expertise

We taped our basketball game yesterday to a mini-DV tape. I am supposed to copy it off on cd or dvd for the coach. I have a Toshiba DR420 (?) digital vidoe recorder hooked to my tv. if i copy to this recorder it works fine on a dvd player hooked to a tv. it finalizes the disk when done and its menu has no options for the type of format you would like it to be in (avi,wmv, etc). the Sony Handycam HC26 or HCR26 (whatever) doesn't have any options on what format you record in. Manual has a 2006 copyright date on it.
My computer is Win XP Pro SP3.
If I take said dvd made above, it will not play in a computer. If I look at explorer, it says it is blank and shows no files or folders. Put it in a tv and it will play. go figure.
I tried the Sony Picture Viewer or whatever its called that came with it. It looks like Windows 3.1. I can copy to my computers hard drive but my 51 minute tape swells to 10 gigabytes! I cannot use the sony software even though I am supposed to be able to burn it to a cd. It doesn't recognize my cd burner.

I can copy from my camera using Windows Movie Maker (version 2) and it will copy it in about 500 meg making it into a wmv.
So now how in the world do I copy that on to a cd or dvd????? so that it plays in anything??? I am using xp pro and have tried Pinnacle videospin with no luck. I would prefer a free solution if possible. maybe Vegas??
Maybe there is a piece of software that will copy it from our Handycam to the computer and then have the option to burn it to a cd or dvd capable of playing on anything. Maybe it already exists within Windows XP??
I could order one of those Sony's One touch DVRecorders for about $200 but that will be a last resort.
thanks in advance for any ideas/advice,
Dave