I converted a VHS to DVD for my wife's co-worker. I have a Lite-On 5045 which is a DVD recorder with a hard drive as well. Basically I used the standard RCA inputs from the VCR into the recorder and old-school dubbed it from one to the other. From there I was able to make a DVD. That was the output that she needed, but the next step for editing and whatnot would be to rip it onto your computer.
I like the looks of that USB device posted by mykalberta a little further up - it would be a lot more streamlined and would save you a step.
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