All you need is a capture card. Then, simply hook up your VCR to your capture card, record the tapes to your hdd, then put them onto a DVD. Ok, so it's a little more involved than that...but that's it in a nutshell. I don't recommend getting a "cheap" capture card. You get what you pay for. The hauppage Wintv pvr-150
has had good reviews, and I know someone who has it and loves it.
If you don't want a hauppage card, then just get a capture card that has the ability to capture from an outside source (VCR, DVD player etc.). Ensure that it has the correct plugins for a VCR, or (obviously) it won't work. Also, make sure that it comes with it's own software to capture from different sources (I'm sure that most do though). Update the drivers for it when you get it too (might want to download the drivers before installing the card, this will save you from uninstalling the current drivers, then reinstalling with updated drivers).
You should also make sure that your computer is up to date, specially with Direct X 9.0c. Making sure that there's no malware etc. on your machine, and shutting down any unnecasary programs will help to speed up the process too, and make it go smoother.
Hope this helps!
War produces veterans, wounded both physically and mentally. They have sacrificed for us.....and it is now our job to help these veterans, as they have already helped us in ways we will never know, in ways that we cannot fathom, and in ways that we take granted every day.