I have already been through this process with some of my old VHS tapes: -
Pleasuredome(hit man),
Pleasuredrome(from my camcorder),
Legendary II, Bowlers(hit man),
Bowlers(opening Night),
Jooce II,
Blackburn Warehouse Parties
This is how I did it.
I have a t.v. card in my PC which also has capture,
I hooked up a VHS to it,
Recorded the footage (came in as an mpeg)
Converted the mpeg to AVI
Loaded the AVI into Adobe Premier
Did the edits in Adobe Premier
Saved the final movie as an AVI
Used ULead DVD Movie Factory to create the final DVD
Adobe Premier also has the ability to save off in web friendly formats such as Real Video, QuickTime and WMV.
Good luck peeps, and I would love to see some of your footage.
Welly.