I have an article here on my other site describing the options for doing this:Capturing VHS or Hi-8 for Archiving or DVD
The first thing I would ask is do you own a miniDV camcorder and if so look in the manual to see if it has passthough capabilities. You can post the model here and look I'll it up if you want.
Another alternative may be sitting right under your nose. Most digital camcorder's have a pass-through feature, you hook your VHS deck or other analog device to it and it will convert the analog signal to DV-AVI which can be recorded directly to tape, passed onto your computer via firewire or both. If you are in the market for a digital camcorder or already have one with this feature it's an excellent choice for converting your video.