Set up the projector on a table, facing a blank, matte white wall. If a matte white wall is not available, get a large piece of matte white card and affix it to the wall with double-sided tape. The room should be as dark as possible when you transfer the film, so set up the projector in a windowless room or wait until night and cover the windows as best you can.
Clean the projector gate with a clean cotton swab. The gate is the rectangular aperture behind the lens. Dirt and hair tend to collect in the gate, and anything trapped in the gate will show up in your transfer.
Load the film into the projector, turn off the lights and run the film. Use this first run to focus and align the image on the wall or card.
Set up the camera on a tripod, as close to the projector lens as possible. Plug the audio output of the projector into the microphone input of the camera, using whatever A/V cables your camera and projector use.
Rewind the film and run it again. While the film is running, line up the frame in the camera, and focus on the projection. Turn off auto-focus to prevent the camera from going out of focus when the scene changes. Adjust the exposure in the camera so the image is clear and bright, and no parts are "clipped" or overexposed. Because film and video frame rates are not identical, the image in the camera may flicker. If possible, adjust the shutter speed of the camera, experimenting with different settings until flicker is minimized. Adjusting shutter speed will require you to change the exposure, because the shutter speed effects the amount of light that reaches the camera's sensor. If your camera has a "24p" recording mode, this may produce the best result.
Rewind the film, press "Record" on the camera, and run the film. When the film has finished, press "Stop" on the camera. Repeat for any other reels of film you want to transfer.
Connect your camera to a computer using a firewire cable, and switch the camera to "VCR" mode. Start your video capture/editing software, and follow your software's instructions to capture the video from the camera to your computer. The exact instructions for this step will vary with your video editing software.
Cut the junk video you recorded before and after running the film. Export the video as "MPEG-2," the format used for DVD. You will need to export the audio as separate files in another format. Your video editing or compression software will have presets for exporting video and audio for DVD.
Open your DVD authoring software and import the compressed video and audio files you just made. Follow your DVD authoring software's instructions to create a menu or set the DVD to auto-play, whichever you want. The specific procedure for this will vary with your software.
Insert a blank DVD-R into the drive and follow your DVD authoring software's instructions to burn the disc. DVD-R discs are generally higher quality and compatible with more DVD players than DVD-RW discs.