I've been using my ReplayTV box, then using software called DVArchive to download it in MPG format to my PC. It's already in MPEG2 at that point but I can edit it and happen to have Adobe Creative Studio to do the rest. You don't need to be so fancy.
I thought of using the ReplayTV after getting absolutely miserable results from my ATI All in Wonder 8500, which lacks a hardware encoder. That's really the key thing. Whatever you get, make sure it utilizes a hardware encoder. The cheaper cards rely on software and just cannot perform as well.
Another angle is if you have a Mini-DV video camera that supports NTSC to DV transcoding. Plug the VHS into the camera and then plug the camera's firewire into the PC to download it for editing and burning to DVD. Not all cameras support this however. My eight year old -TRV8 does.
Finally let me point out, make sure you use a good quality playback deck for your tapes. You don't want to chance the deck eating your tapes or damaging them, but also you'd be surprised at the difference in quality among decks. I mean, you would think that with VHS being 30 years old now, that it would be simple for everyone to build a top-notch machine but comparing our Sony Hi-Fi deck to a Go Video deck we have, well, I just tossed the Go Video into the recycling bin. Woof.
-Brad