As long as they aren't protected by some macrovision method, you should be able to purchase any capture card and just record the video to your computer. A good capture card(such as the WinTV PVR-150) has an onboard MPEG2 compressor and it's captured videos can be burnt directly to a Video-DVD
All you will need is either a Composite, S-Video, or Coaxial cable. You will need one of those, but it depends on the type of connection your VCR and TV Capture Card has.