The best way to capture analogue video under any operating system is with a firewire analogue video adapter such as Canopus ADVC 110. This supposedly gives much better picture quality than most of the PCI capture cards but these adapters are still quite expensive at the time of writing. If you plan to do a lot of analogue video capture then it may well be worth the extra cost. Under linux you could then just use dvgrab to capture from one of these but I'm not covering that method here.
The first step, of course, is to connect your VCR to your PC. Most TV capture cards have three types of video input: s-video, composite (the yellow one) and TV aerial. s-video gives the best quality of the three so use that if you can. I have an Avermedia TV Capture 98 PCI capture card which is based on the bt878 chipset. The picture I get with this card is quite grainy and I hear that the saa713x chipset capture cards are supposed to be much better- see the v4l2 wiki link above for card recommendations and compatibility. Another thing about this card is that I couldn't get it to find my VCR signal through the aerial connector and so I had to use a SCART to composite cable.
After plugging your VCR into your PC (including running an auxiliary cable from your VCRs sound outputs to your PCs mic in) insert a VHS tape, push play and start tvtime to check you are getting a picture and sound. If you are trying to get a picture through an aerial cable then you will probably have to scan through the channels but this isn't normally neccessary with composite and s-video. If there is no sound then you will need to open your mixer program (like alsamixer) and turn up the mic input levels.
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