I'm a bit late with the suggestions but I think you have already come to the same conclusion.

We picked up a cheap DVD recorder (about £80) and linked it to the VCR and transferred old tape footage onto a DVD. The man with the 'brains' is out right now but I can get him to tell me which output goes where etc when he get's back. (Sorry I wasn't paying attention). It is simpler solution than using a PC with a capture card I think.