I ran into this problem a while ago, went out and paid £80 or so for a pinnacle super dooper capture device, when i got it home i found that the quality just wasnt what i expected.
However, after taking a moment and had stopped stamping my feet in a tantrum, i found that my sony handycam could do the job far better. All you need is a av lead from your vhs player to your camcorder, then a firewire lead from your camcorder to your pc. Using this method i can capture straight into premier pro without having to record onto dv tape and the quality is superb.
Certainly worth investigating....
May the force be with you..