Others can help you with what works. I'll help you with what to avoid. I bought Pinnacle Studio 10 software. It uses a little box to interface the VCR with the computer. The software would then convert it to the desired video format (MPG2, AVI) and allow some editing down to the frame level. The quality is not great, the program crashed constantly (the manufacturer never could figure out why), and the sound and video often get a bit out of sync.

I made a complete DVD library of our home movies and plan to redo it again with better equipment some day.