This probably belongs in the General Hardware Forum, but either way your question will be answered, so I might as well post a reply here.
Buy a TV capture card and make sure it has a video input either composite or S-Video, if you want to hook your VCR up that way. You could route your cable/satellite TV through the VCR and connect the VCR to the coax connector on the TV capture card, but this can be skipped if the card you buy and the VCR has either composite or S-Video. I recommend ATI cards, either the simple TV Wonder or a Radeon All-In-Wonder, as I've had success with them. You could use another brand though; I'd suggest doing a search on Google for reviews of TV capture/tuner cards. Likewise, you can search for reviews for video editing software. Personally, I capture using 320 x 240, 30fps AVI video with 44.100KHz, 16bit, stereo audio. It produces HUGE files, but the quality is excellent since less than 1% of frames are dropped during recording. I then splice the AVI to omit anything I don't want and save it as a WMV file in Windows Movie Maker. I've also used NeroVision Express 2, but for me, Windows Movie Maker is a piece of cake to use. You can use NeroVision (or many other software packages) to save files as AVI's or MPG's. If I have an AVI, WMV, or ASF file that I want to convert to MPG so I can make a (S)VCD out of it, I use TMPGENC. If you use video editing software, such as NeroVision, that can create MPG's then there is no need to convert the file with TMPGENC. Furthermore, if you use video capturing software that can output in MPG, and you see no need to edit the film upon completion, then you don't need Windows Movie Maker or NeroVision. Just create a (S)VCD in Nero Burning ROM with the MPG you have.
Each TV capture card has a maximum resolution and capture rate, in frames per second. There are cards that support 640 x 480, but the only cards I have used only support 320 x 240. Poor me.
Also, the capturing software limits or enables you to capture the video in certain formats: AVI, MPG, WMV, and so on. I use ATI's MultiMedia Center, and while I doubt it's the best piece of capturing software, it does the job for me. I urge you to check out some reviews to see what suits your needs, both hardware and software.
No, I like women.