Welcome to the forums!

However, I am afraid I have mostly bad news for you...
my laptop is not the fastest laptop in the world...
Your camera, as you perhaps do not realise, films using the AVCHD format, which is high definition mpeg-4 using the h.264 codec. So the option to select the AVCHD output was in fact correct, depending on what you intend to do.
The bad news is, however, that your computer is not up to the job of playing AVCHD smoothly, or even editing it. AVCHD is the most demanding of all formats currently on the market, and you require at least a decent Core 2 Duo processor (not just a dual core one such as yours), and preferably something like a Quad or higher.
There are a couple of options: you can use SmartRender which is built into Video Studio. This creates virtual 'proxy' files of your originals, in standard definition mpeg-2 format. You edit these, and when finished, the edits are applied to the high definition originals. But it takes some time for those proxy files to be created, so you have to be patient.
The other option, and in your case probably the preferable one, would be convert your AVCHD originals into some other format, and then edit them. Since you are hoping to produce a DVD, that would be standard definition mpeg-2.
Now a bit of further bad news...

Your project is five hours long... Just think about it for a moment. Have you ever sat through a five hour movie? While one or two exist, in the main, films are made not much longer than two hours since producers know that audiences are unlikely to sit still for much longer than that. So first off, I would suggest your think about cutting your project down into two or three or even more pieces, and producing a separate DVD for each.
Apart from the boredom factor, there is a good technical reason for this as well. You ask how much footage normally fits onto one DVD... That is a bit like asking 'how long is a piece of string?' You can squeeze a lot on, but the downside is that you start losing an awful lot of quality if you put much beyond 2 hours onto a single layer DVD... Your get the best quality putting only around about an hour of video and using a high quality bitrate of 8000 kbps. Your will also get very good quality with around 90 minutes using 6000 kbps. Two hours will use a bitrate of 4000 kbps, and will give you quality something like VHS tape. But below that bitrate, the quality starts to deteriorate fast. Squeezing five hours on would, in my opinion, make the DVD virtually unwatchable in quality terms....
As a footnote, I see that you actually asked how much HD footage can be squeezed onto a DVD. This opens up a whole new can of worms, since there is a thing called a 'hybrid DVD' or 'AVCHD disc' which burns AVCHD footage to a standard DVD disc, but burns the original AVCHD (and not mpeg-2) using a file structure on the disc which is similar to that used on a high end Blu-Ray disc. Such a disc can only, however, be viewed using a Blu-Ray player rated to play hybrid discs. And to get best quality, you would need to use a bitrate of around 18,000 kbps, but that will only allow around 20 - 25 minutes of video to be burned to a single disc. By reducing the bitrate, you can squeeze more on, so that using a bitrate of 12,000 kbps will allow about 50 minutes on a single layer DVD. But beyond that, the quality falls to that of a standard DVD, and thus negates the value of a hybrid disc.