I've done it with my Sony mini-DV camera.
VCR out to mini-DV in.
Set the camera to output via firewire on the fly ( I was not recording it).
Sony mini-DV firewire out to computer firewire in.
Captured with Nero recode or express.
Did some minor edits. Added chapters.
Burned to DVD.
All done quite quickly (real time). Two 30 minute vcr tapes, edited and burned to 4x +r DVD in under 2 hours. Nothing fancy, just quick and dirty.
e6400 Core 2 Duo @ 2.13ghz
GeForce 7600GT 256mb PCI-e
2gb DDR2 667mhz Patriot ram 1.8v in d/c
Gigabyte GA-965P-DS3 F10 BIOS
WD Caviar SE16 250GB SATA300 7200RPM 16MB Buffer
Samsung SATA2 80gb 7200rpm
Samsung SH-S182D 18x DVD burner