hi, for your computer you need to buy hardware AV decoding kit, usually between 50 - 150 quid. Software is supplied, but you will need alot of time to do this, and to be honest if its good quality you want, then buy a dvd writer also, and create dvd's rather than vcd's. Pernonally i prefer the pinnicle kits, remember the only good ones have dedicated internal cards or use USB 2.0 so don't buy anything else.
A cheaper option is to buy a TV card that allows you to record, plug your video into it, tune the video in and press record. You will need something then to create the CD/DVD's.
Another option is to buy a dvd writer stand alone, plug your video into it and press record. This will cost you around £300.