You should be able to get a "good" capture, but there are several obstacles to getting a perfect capture... You should be able to get better than VHS-quality. But, if you are a critical viewer with a plasma TV, you might not be satisfied with the results.
I believe your DVR (supplied by DishNetwork?) is recording the direct-digital broadcast. Therefore, the delayed/re-played "data" is identical to the original broadcast.
They do not want you to have access to this pure digital data/signal.... they don't want you editing or distributing it.
If you want a perfect recording, you have to use their hardware.
Your capture card appears to be MPEG only.
The trick is to capture at a high-quality (high bitrate) DVD compatible setting, and then don't re-code when you burn to DVD.
The DishNetwork signal is digital. You are doing a digital-to-analog-to-digital conversion. There will always be some quality loss with this process, and additional quality loss with each MPEG-2 encode cycle.
The digital broadcast is probably MPEG-2, but it is probably not DVD compatible. It probably has a higher bitrate, and a different resolution. So, even if you can capture the original MPEG-2 broadcast, it has to be re-coded for DVD. MPEG-2 is lossy, so there is always some quality loss when it's re-coded (even without the intermediate analog step).