I've been doing this for a number of years, and have found that the easiest is to plug your VCR into a Home Theatre DVD Writer (HDD version) - I use my LG and it captures/writes to HDD then writes to DVD-RAM disc after editing - if I want to edit on my PC, I copy the file from disc and change he extension to mpg, then edit and burn back. Currently using Panasonic DVD-RAM discs for the transfer, as these are very reliable (and I got them cheap from Makro a few months back - ended up paying R2.00 per piece, as the salesman said the stock wasn't moving - so I got 50! ).
I can always burn straight to DVD-+R also, for the general transfers.
Used to have the VCR plugged into my TV capture card (hardware encoder) on my PC, but encountered too many issues with the sound sync, etc., even though I have a very decent PC setup.
It all boils down to what you can afford and what you want to archive (quality, etc).
