You need a video capture card to first convert the video from analog to digital format. These aren't necessarily cards anymore - they can be USB devices now.
Then you will likely need encoding software since the default encoder which comes with most video capture cards create an MPEG2 file (very high quality, low compression - basically DVD). If you want an AVI which fits on a CD, you will need to re-encode it.
There are other sites basically stating the same thing. You need a device to play the videos that has the capability of using a patch cable between that device and your PC. And some software to record / edit the digitized copy. Or get a transfer service to do it.
Your choices depend on how many you have to transfer.