Connect your VCR to either the external USB capture box, the video capture card or the inputs on a graphics card. This can be accomplished by using either an S-Video cable or an RCA cable to hook to one of these devices. (Hint: if you do not know if you have a video capture card or inputs on your graphics card, buy an external USB capture box. By hooking it up to your computer via USB or FireWire, you will easily be able to hook up your VCR to it via RCA or an S-Video cable.)
Insert a VHS tape you want to convert and power on the VCR. Open your favorite video editing software (such as Pinnacle Studio Plus). Once open, go to the "Capture" section of the program and play around with the settings. Keep in mind that putting the quality settings up too high will use up more space on your computer and will not give you a better picture. VHS supports roughly 30 frames per second. With this in mind, use a setting that reflects 30 frames per second. In addition, turn on a feature called something along the lines of "Automatic scene selection." Once you have the settings where you want them, begin the conversion process by clicking a button that says something along the lines of "Convert."
Create a menu once your video has been captured. This will allow you to easily browse through the scenes your program created. Your program should have a menu creator wizard that will allow you to easily create the menu. In addition, make any edits you would like.
Insert a CD or DVD into your CD/DVD burner and begin the burning process. Typically, the program you are using will also burn your captured videos as well. Go to the burning section of your program and begin burning the captured videos to a CD or DVD. If you are burning to a CD, you will want to burn using a process called "VCD." This will allow your DVD player to play the CDs as if they were DVDs.
Place the CD or DVD into your DVD player and begin watching the movie.