I am doing this with my collection of VHS tapes and found this forum a huge help in find the processes required to do it. Search the forum here and you will find many answers. Also look at the forums on www.thewholewideweb.com.
I have a Panasonic DMR-E50 to which I've connected my VHS player by SCART.
I record in SP mode onto DVD-RAM. I then place the DVD-RAM disk into my DVD writer on my PC (Panasonic LFD-521) and use the bundled software to edit out commercials, etc.
I then use ULead's Movie Factory 2 to import the files from the DVD-RAM and make cool looking menus and then burn to DVD-R.
If you opt for a Panny then there are a few things you need to be aware of when doing the above. You need VBR on the DMR set to fixed. And use ULead to import the video rather than use MovieAlbum to export as exporting from MovieAlbum will lose AC3 audio.