the best and cheapest way would be to get a capture-card(or tv-card) [philips adc(saa713x) is something i can say works very good], use vdub or virtualvcr to cap, and encode with usual mpeg encoders.
(you have freeware encoders too. find them on doom9 forum).
so total cost would be about 30-40$ for a card.
i don't understand the need not to open the pc case to add a card: if you get mpeg2 or dv cap systems you'll be paying more and getting less (less quality of capped content).
also, i just got a vhs tape from a person that didn't had luck in converting it via dv-camcorder or mpeg2 card, so stories about dv systems being bullet proof don't seem to hold water: also, canopus is notorious for poor conversion(screen goes black on poor tape portions) of vhs, so they now added tbc to advc300. but look at the price of that. i have heard simillar stories about pinnacle dv solutions and vhs capping (loss of sync).
i feel a cheap card is a most robust way to cap. (offcourse, cheap tv-card and onboard audio(eg AC97 codec) may sometimes(depending on the onboard audio manufacturer) result in sync issues, but pci sound cards are real cheap these days. no need to be afraid of async on cheap card anymore than on dv or mpeg2 solutions)
the easiest way to do this, is(offcourse) a stadalone dvd-recorder.
as said here
http://episteme.arstechnica.com/groupee/fo...31#279002116731