OK, a few points. First off, VCD's are HIGHLY dependant on your source material. If you have a snowy picture (Cable) then it will probally look real bad. If you're recording from something like C-band or a rooftop antenna, it will look MUCH better.
NTSC TV's are 525 lines, and interlaced. However, only 480 of those lines are actual picture material (the remaining lines are the sync pulses) Standard VHS is 240 lines. Super Beta is 280 lines. SVHS is 400 lines. ED Beta is 500 lines. VHS can be highly dependant on the equipment you use though. If you record and playback in VHS on a SVHS machine, you will find it will look SIGNIFICANTLY better than most VHS machines, as the processing circuitry in most SVHS machines is far superior to that in most VHS machines. VHS machines tend to have smudgy/bleeding color, lots of chroma noise, and other problems, which the superior processing circuitry in SVHS machines help compensate for.
But anyway, my point is that given a good source, a VCD is roughly equivellent to a VHS tape, but it depends a LOT on the source. Give it something that's fast action (like a basketball game or racing) and it will pixelate. VCD and VHS each have their own strengths and weaknesses. Personally, I'd reccomend an SVHS machine over this.