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I'm going to assume that by DTS jobs you really mean DTS packages! It seems like you are absolutely heading in the right direction with Business Intelligence Development Studio. Simple DTS packages that perform data transfers should convert without much pain. Please check out my SearchSQLServer.com article for insights on converting DTS packages to SSIS packages.
As to your other question, unfortunately, I don't see a way within the OLE DB Destination Editor to designate delete first, then insert. Because of this, I always had a pre-Data Flow Execute SQL Task to truncate the table I'm writing to. Interestingly enough, when you specify a flat file destination there is an 'Overwrite Data in the File' check box available.
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