Another option (which I use) is a VHS/DVD Recorder Combo unit. They're inexpensive (mine was around $100) and provide an easy way to transfer the VHS to a writable DVD. Then use the Capture tab in PD9 to rip the DVD into an MPeg.
Some have voiced concerns over possible quality degredation when using devices like this, but given the output quality of a VHS tape, it hasn't been much of a concern for me. One added bonus is that you get a copy of the original, raw VHS archived on DVD as well.
Keep in mind though that these devices usually include anti-piracy features, so commercial tapes may not be able to be copied. Also, depending on the quality of the VHS tape, even home recordings that are severely degraded may trigger the 'you are not allowed to copy this program' message, and it will fail to copy.
PowerDirector 10 Ultra
Dell XPS Studio - i7 3.4 GHz / 8 GB RAM / Windows 7 Professional 64-bit