[gsh]

Originally Posted by xjsb125

What resolution are you recommending the h264?

Agreed on using a conversion box like the Canopus 55/100/110. Those boxes will allow you to capture your video in an uncompressed .avi file.

No they don't. They capture to DV AVI, which is 25mbit/second, approximately 8:1 compression over true uncompressed AVI.
If you want to capture to uncompressed AVI you will have to use a capture card and have a pc that has a fast enough processor to not drop frames while encoding (not too difficult these days). IMO, as long as the person doing the transfer work knows what they are doing, DV capture is more than good enough for vhs sources.
The most important part of the equation is the playback device - you need to get the best signal possible from the tapes, and that will require a good prosumer vcr (a minefield in itself as not all tapes will play back better on a particular machine so having a number of different prosumer vcrs with different features/filters etc to choose from helps), then ideally a hardware tbc and proc-amp for making the most of the source during capture. Once on your pc software filters can possibly help clean/enhance the image more.
You must be careful not to do more damage than good - often fixing one problem can introduce even more.