[DanielG]

This is how I do my VHS transfers.

Make sure you have a good VHS/SVHS deck. This is most important.

I then use a miniDV videocamera which acts as an analog-digital converter. I plug the VHS deck into the videocamera (the camera should come with a cable to do this. Use the S-Video connection if possible). Then I run a firewire cable from the miniDV videocamera to my PC.

To 'capture' the video on my PC I use a free bit of software called WinDV. This software uses the DV-AVI codec and results in an AVI file 13 gigabytes per hour.

This file is perfect for editing and you can import it into any video editor (Vegas, Premiere, Windows Movie Maker). A side-effect of VHS tapes is that there is 'head-switching' noise at the bottom few lines of the video. Sometimes the edges and top also have a bit of noise. I would recommend adding a black border around the affected areas (using your video editor) or just crop and zoom it out.

Once you have edited your video, you render the video to MPEG-2 and the audio to PCM or AC3 and then import the resulting files into a DVD Authoring application. This application will allow you to create menus, chapter points and it will then create a "video_ts" folder that you can burn to a DVD.