My church was recording the service to HD tape (cutting out the music during the service manually using start/stop on the video camera) then replaying the tape to capture the stream to the iMac, cleaning it up using Final Cut Express, compressing it, then uploading to Vimeo. This process took way too long so I improved on it.
We now record directly from the camera to the iMac running Adobe Premiere Pro saving the file to the hard drive. We finally got a license to record the music during the service, so we record the entire service now (average time is 75 mins. which does not fit on a 63 min. HD tape...LOL). I then compress the .MOV file using Compressor 4 (available as part of Final Cut Pro) with the Apple Qmaster cluster configured to increase the processing power to speed up the compression. Vimeo then converts the file to .MP4 to allow playback on mobile devices.
I usually have the service uploaded to our website in less than 3 hours after the service is over. The church used to create DVDs for home use, but no one wants to buy them anymore so we stopped. We also found that there are too many compatibility issues with home DVD players not being able to play burned DVDs.
Check out our website if you are interested. http://FindPurposeAtFaith.org
and navigate to the weekly sermon videos in the right hand menu.