If you want to convert the videos to a format that will play in standard DVD players, you will need to use some software to capture and then convert the VHS feed into a DVD format (.VOB). There a a huge amount of programs that will do this, but if you are looking for something fairly simple that will just get on with it, the Dazzle peripherals from Pinnacle are fairly good by reputation. Similar to the Belkin system above, they come with a USB video capture breakout box and software that will either allow you to create a basic menu system on the dvd or record pretty much straight to dvd (with time allowing for encoding) click here
it's worth noting also that you are often required to have a fair bit of hard drive space as the software uses this to buffer and store temp files when converting the video. There's a few of the dazzle products on that link I gave you, I hope it's of some help.