I've done some research and have learned that to convert from VHS to digital format it is better to use an S-Video output from the video player. I've also found some hardware on sale, a thing called "Dazzle DVD Recorder", which comes with software to convert from one form to another.
I was wondering if there was some sort of more basic piece of hardware out there, cheaper than Dazzle, to convert from S-Video to USB (even a simple cable) or if some computers had S-Video input jacks. And, if so, is there some good, free software out there to do the conversion?
Maybe this KWorld DVD Maker is what you're looking for. This is about as cheap as it's going to get when it comes to video capture devices.
Personally, I've never cared for cheap, external devices as they normally just off-load to your CPU. If you don't have a powerful CPU (like I didn't the last time I used one), capture quality was poor (at best).
If you have a dual-core system with at least 2 GB of RAM, this would probably work just fine.
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