You probably want to connect your VCR via the X1's composite video input--the yellow RCA jack.
You probably do not want to try to get a composite to S-Video converter. There are such devices, they are called "Y/C separators" "comb filters" and the like. The X1 has one built in, and it is probably as good as anything you can reasonably expect to get.
The other solution is to use a VCR that has S-video output such as a JVC S-VHS machine. But this would also be expensive.
Just connect the composite output of the VCR to the composite input of the X1 and you will get results that are about as good as you can expect from VHS.