I have a conversion kit in the form of a usb dongle you use to connect the vcr to a pc. It uses 'Ulead Video Studio' software to process the vcr video into an MPEG file that you can then transfer to DVD or play on the PC. This particular software is a bit of a fiddle and seems to need precise settings to make a good DVD, but it does a good job.
I not only use it to convert VCR recordings but after the DVD part of my HDD/DVD recorder went wrong I also use it to tranfer HDD recordings as well. I dont know if there is better software out there that will work with the same system, if there is i would be interested to know.