What about getting a set-top DVD recorder? They are fairly cheap these days and you can plug in your VCR and record straight to DVD - no software or mean hardware needed.
I backed up all my personal VHS tapes (not retail tapes) to DVD with my LG RH1999H and still use it today for TV recording and DVD backups - IMHO was worth the outlay and I also still help out family and friends with conversions...
The great thing about the model I have is that I can capture to HDD, then burn to DVD if I want. All basic editing can be done on the recorder before burning, so there is no need for transfer to PC.
For intricate editing, I remove the HDD from the recorder and hook it up to my PC, edit, then burn to DVD on the PC - the file formats are all MPEG2, so I just drag and drop.
Remember that if you go the TV Card or Capture Card route, get one with a decent built-in hardware encoder (usually more expensive), unless you have an uber-powerful PC - If you have a software encoder card, and a medium spec PC, you will get dropped frames and audio sync issues.
My 2c worth
