Well, to start with you will need a DVD Burner. Just go to your local
Best Buy, Circuit City, etc.... and look at them. Ask the salesperson for advice (since I have none on a DVD burner - I have one that's so old the company that made it is out of business). The DVD Burner should come with some software that will actually do the burning of your videos (mine did). If it didn't come with software, look for Roxio's CD and DVD Creator 6.0 software. It's cheap and easy to use.
Then, while you are there at the store, ask about a video capture card - there are a bunch out there. Since you're just pulling in VHS, look for one that has RCA inputs on it.
And of course, before you go to the store, make sure you have a large hard drive in your machine. Large means at <i>least</i> 15+ gig free - capturing and editing tapes like that takes a lot of space.
Oh, did I mention a fast processor also?
Anyway, it is a lot of work to get setup to do. You also can check out the prices at Sams.
Walmart, etc and such. They do video transfer also.