I worked on several projects similar to yours, a few years back. Around 2004, I bought a device called ADS InstantDVD. Many people complained about it, but I was able to finely tune the settings (with assistance from the folks at videohelp.com), and I digitized many VHS and Video8 tapes with it. In fact, once I had the proper drivers and I knew how to tweak the settings, I was able to use that same video capture device on several WinXP machines, in both North America and Europe.
I even tried comparing my resulting MPEG2 (DVD) files with DVDs created from the same source by a Liteon standalone DVD recorder. My files had richer color and contrast. So I know a thing or two about VHS to DVD conversion
🙂
Now back to your question... I would advise you to try something like this: Hauppauge USB-Live-2 Video Capture ($39.99) -
http://www.newegg.com/Product/Produc...82E16815116048
It's a bit more than the one you saw on Monoprice, but I guarantee it will give you better results.
You see, there are two types of USB video capture devices. Some of them have onboard chips, which perform an "on-the-fly" conversion to the desired format. Some of them simply pass the audio/video signals, which then get transcoded by your machine's CPU (and software suite).
The device I recommend has its own digitizer, and considering Hauppauge's long history in this field, it's sure to be a good chip. Of course, at this point most CPUs will be able to transcode MPEG2 in real-time, but why bother?