I decided to edit the video first, so I used my Sony digital video camera to capture the video from my VHS player. This, of course, captured in DV format, which was transferred, via Firewire, to my computer - which took forever - and edited with VideoWave. Then it was on to DVD Builder and ultimately a DVD burned in MPEG-2 format. The quality of the DVD matched that of the original VHS tape, so I consider my project a success.
Had I wanted to burn a DVD straight from the VHS tape, I would have hired someone with an analog capture box to capture the video directly to MPEG-2 format.
I should point out that although many DV cameras can capture video, this is not really what they were designed to do. I would have achieved a better (higher quality) capture with a proper analog capture box. However, VHS images are only so good to begin with - and the tape was 9 years old - so my DV camera was probably good enough. Different brands or models of DV camera might do a better or worse job at capturing.