If you plan to use a good video editing program, we suggest that you try Sony Video Vegas 5. It's available as academic software for $199 from Ventura Software.  http://venturaes.com/

You will find Video Vegas professional but very capable for most beginners and intermediate users. We can recommend DV Storm or Avid, but they're on another plateau.

If you are on a limited budget, you can stick to what you have.

May we recommend the Sony Digital Converter.  We've use it to convert VHS to digital. MP.

http://search.netscape.com/ns/boomframe.jsp?query=sony+digital+converter&page=1&offset=2&result_url=redir%3Fsrc%3Dwebsearch%26requestId%3De68782b6f457a74%26clickedItemRank%3D7%26userQuery%3Dsony%2Bdigital%2Bconverter%26clickedItemURN%3Dhttp%253A%252F%252Fwww.freetradephoto.com%252FDVM-CDA2AnalogToDigitalConverter.htm%26invocationType%3D-%26fromPage%3DNSCPResults%26amp%3BampTest%3D1&remove_url=http%3A%2F%2Fwww.freetradephoto.com%2FDVM-CDA2AnalogToDigitalConverter.htm

How to use it:

http://search.netscape.com/ns/boomframe.jsp?query=sony+digital+converter&page=1&offset=2&result_url=redir%3Fsrc%3Dwebsearch%26requestId%3De68782b6f457a74%26clickedItemRank%3D1%26userQuery%3Dsony%2Bdigital%2Bconverter%26clickedItemURN%3Dhttp%253A%252F%252Fwww.hawaii.edu%252Fcoe%252Fdepartments%252Foutreach%252Ftutorials%252FDigital_video%252FAnalog_MediaConverter.pdf%26invocationType%3D-%26fromPage%3DNSCPResults%26amp%3BampTest%3D1&remove_url=http%3A%2F%2Fwww.hawaii.edu%2Fcoe%2Fdepartments%2Foutreach%2Ftutorials%2FDigital_video%2FAnalog_MediaConverter.pdf