Well, there are a couple of ways to do it.
If you want to just make straight copies of a home video or something you can't get on dvd:
Panasonic makes a unit (http://store.yahoo.com/aaaprice/padmdvdre.html
that has a built in 80 gig hard drive and a dvd burner.
Connect a vcr to the E80 with 2 way rca cables (the red, white and yellow). Pop your source tape into the vcr, your blank dvd in the E80 and hit record.
You can use your tv to view or you can get a small lcd screen that also has audio to view it.
The instructions will tell you how to finalize and even add more than one tape (should there be enough space on the dvd). It also has menuing software.
You can also use it to capture clips and copy them to your computer.
Another way to do it is the Avermedia EZDVD USB 2.0 bridge or pci card (go to www.avermedia.com
Just plug your vcr into the bridge or the card and use the software given. The best software, IMHO, is Vegas Video 4.0. Capture using that and save file as mpg2 or avi.
Then use DVD Architect to burn the dvd.
There are a number of ways to do it, but the E80 is the easiest
You can get it for $500