This can be fairly easy to do depending on your Computer set up. Basically theres several ways.
If you still have the original footage on your DV tape or Hi 8 tape or even your orignal 8mm then its probably best to use this ( unless you have edited it ) this will give you the best possible quality.
If you do not have the tapes then use the VHS recordings that you have..You will need appropriate compisite plugs on the back of your graphics card or if you have a firewire camcorder and a firewire card on you PC you could transfer the footage from your VHS back to your camcorder then from your camcorder to your PC.
Once its in your PC you will need a software package to convert it to MPEG..somthing like Pinnacle 8 will do this, then you are free to burn a VCD.
A word of warning though...not all DVD players will play VCD's or in this case a CD-R VCD.
Another way is to buy a standalone DVD recorder and go straight to DVD ( quality will only be as good as the original recording ) There are several DVD standalone recorders have a built in VCR so you could probably do it straight away in the same machine with ease. GO for DVD-R if you go down this route as it has the highest compatability ratio of any of the DVD formats ( there are 4 )
If you do a search in the help room under VCD or DVD you will see many people have started to convert their VHS footage to VCD or DVD ie digital format.