You will need a TV Tuner Card inside your computer in order to get the video from the VHS into your computer, most software can capture to a MPG file, which you can use a DVD burner program to burn to DVD, i suggest DVD-Lab for the burner, and WinDVR to capture the video

I have never done this, but i have burned AVI/MPG/WMV/RM to DVD, and captured a few minutes of video(the fastest desktop i have is a Pentium2, all my fast computers are laptops, so i can't capture long videos)