There are a couple of ways to convert a VHS (analoge) signal to DVD (digital). The easiest is to use either a VHS/DVD machine or, even better, a DVD/HDD machine (Sony , Panasonic and Toshiba all make them). If you don't want to buy one, then ask if you can borrow one for a while. But even though I sell them part time (and therefore biased), I wouldn't be without the hard drive recorder now - it makes life a lot easier.
Use normal RCA leads (like the ones for a Wii), and plug them in Line 2/3. Start the HDD, then start the video. The video will then go on the HDD, and then you can edit by frame, etc. Burn it to a DVD, and your done. Or transfer over to a PC for any more advanced stuff. There is no copy protection on a DVD burned from a HDD/DVD recorder, other than making sure you finalise it.
Although thats the way I did mine in the end, I started with a TV card in the back of the PC, but I did find that my slow PC had problems handling the data on one drive. But if you get a usb convertor, its even easier. I think I saw one at Lidl/Aldi? the other day for about £20, but
http://www.amazon.co.uk/Grabber-designed-capture-source-editing/dp/B000S0QIPI/ref=dp_cp_ob_computers_title_0 has got one for £18.99. The software for editing, etc normally comes bundled (although its usually a bit basic), and you can then burn it in the normal way.
You can find them for less than a tenner on ebay, try looking for video grabber. All of them should output to Avi or Mpeg, which means you can use MS Moviemaker (its on your PC, even if you've never noticed it) to edit. AV Forum has lots of info.
The other bit of advice is record a bit first to see the quality output quality . VHS looks terrible now, and although you can improve it by upping the transfer bit rate, there comes a point where there is no point making a huge file - the source simply isn't good enough to make a huge difference.
And if your thinking of transferring a film from VHS to DVD, unless its not on DVD already, don't bother - it will look rubbish and you've wasted a couple of hours into the bargain - buy it on Amazon instead.