Hmm, well the problem is that you should be able to tweak with the capture settings, use a good capture program such as ulead movie factory and then use the mpeg directshow plugin to capture in mpeg in real time, this will save lots of time later, no need to encode!
and if you get the setting right, example keep within VCD white paper standards, frame size should be set to 352*288 pixels and data rate can be set to between 391 ~ 1150 kpps(more about this later)
then after you have captured you can author a VCD staight away with out the need for further encoding using the same program (ulead movie factory)
about the data rate, if you want to fit something like 2 hours and 40mins then a data rate of 450 kpps will give you the and also i audio data rate of mono 96 kpps and samle rate has to be set to 4100Khz
but mind you at these low data rate, the quality will be total crap, and might not make DVD playes very happy.
Seeing that you have lots of films on VHS and you would like to watch on your computer then why not use Windows Movie maker (only on windows XP i think) anyway this program is wicked i've copied lots of VHS movie onto my hard drive its gots lots of simple setings and if you set to "video for broadband NTSC (768 kpps)" then you can get really good picture quality and have somthing like 5MB a minute Not bad huh?
only problem is that the formats is windows own .ASF any will play on computers with the right version or correct codec of windos media player, this is the method i use, now i got loads of films on CD-R, (good to watch them on laptop too when traveling on trains!)
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