iamloco724, I have started a similar progect, converting old family VHS tapes to DVD. I bought a video capture device from NewEgg a while back. Make sure the capture device does the digital converstion as it trasnfers the data to the computer. That is important as it takes a lot less time and work from your computer. And as you transfer you can preview, capture still images, and do some cutting.
I hook my VHS player to the device, I forget the brand, and it converts and transfers to my computer using the bundled editing sooftware. I have used other Editing software also such as Sony Vegas Studioo, but the bundled software is much easir and simpler of course. I have already converted 2 tapes to DVD with on screen menu and all. You dont need a real powerful PC , but you do need a large capacity HD for storage. And you need a fair amount of time depending on how much editing you decide to doe.