Connect VHS to Firewire Camcorder, Camcorder to Mac, record in iMovie. If you don't have a firewire camcorder (sounds like you do) then there are converter boxes you can buy. Here is an article about doing what you want to do:
http://www.macworld.com/2004/05/features/fromvhstodvd/index.php<snip>
From VHS to DVD
Give New Life to Old Movies
By Jim Held
Somewhere in your house is a drawer full of videotapes -- aging home movies shot with a big, bulky camcorder that may not even work anymore. You haven't watched these movies in years, but all this talk about the digital hub and iLife has got you thinking, "Why not transfer those old videos to the Mac and burn them to DVDs?"
Good thinking. Videotapes deteriorate over time. Heat, humidity, and improper storage take their toll on tapes, decaying the magnetic particles that represent your child's first steps. By digitizing that old footage now, you can effectively stop the deterioration in its tracks.
Better still, if you own Apple's iLife suite and a SuperDrive-equipped Mac, you can use iMovie and iDVD to enhance and share your footage for all to enjoy. You can cut the scenes that seemed important then but are snooze-inducing now, add music and narration, create chapter markers to allow fast access to important scenes, and then burn it all to multiple DVDs, so that everyone in the family can have a copy.
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