Yes, just connect the S-Video and L/R audio cables to the Mag recorder first, then connect one of the Mag's output cable types (HDMI, Component RGB+L/R audio, S-Video+L/R audio, Composite YWR RCA) to the TV and watch/record at the same time.
A help file on recording to the Mag's HDD
is here. Click on the subject titled "Manually Recording a TV Channel" there, which is virtually same as recording from your PC. You could also record directly to a DVD if desired. However, if your end goal is a DVD, it's better going to HDD first and high-speed dubbing to DVD to avoid any possible glitches in the DVD media (esp. if using poor-quality discs).
Info also on that page on copy-protection filters if you run into any of that from your PC.
Lots of other info/help in the indexed list of help files... click #1 in my sig. or one of the buttons at top or bottom of the linked page.