Copy home VHS to DVD via iMac

I have an iMac using Mac OS 10.6.8. I have a VHS player. I would like to copy all my home made VHS to the Mac, edit the contents, copy them to my Mac and Time Capsule and burn DVDs for my family. What is the best and simple way to convert the VHS analog contents to digital, what unit will work (VHS to Mac) and is iMovie the best tool to edit and what is best to use to burn DVDs. I Googled this quandary and I get so many options, I am somewhat bewildered. Who out there has done this. Thanks.

I have done lots of that.
To get your VHS video into iMovie, use the Grassvalley ADVC300 (much better than the roxio easy vhs to dvd).  With the ADVC300 Audio and Video go in, FireWire comes out. It also comes with a nice Macintosh application that works flawlessly with iMovie 06 and iDVD 09/11 (I have used it a few times with iMovie 11).
The program that comes with the ADVC300 has some nice filters that can improve video and audio of the source material. The ADVC300 will take Audio and Video from any source (VCR, Tivo, Satellite Receiver) and convert it to FireWire (iMovie will treat it like a camera).
http://www.ebay.com/ctg/Canopus-ADVC-300-Converter-/138717476
I would use iMovie 06 with iDVD 09/11, why?
iMovie 09/11 uses 'single field processing' meaning every other horizontal line of the video is thrown out, which reduces the sharpness of the footage. iMovie 06 uses ALL of the image to form the video.
If your primary workflow is editing DV clips and making DVDs, iMovie '06 is better suited. Your movie will arrive at iDVD in DV format, which is an ideal match for making a DVD: same resolution, same pixels aspect ratio, and original quality. If you share your movie from iMovie 09/11, it gets re-rendered at 640x480 or less, and then iDVD upscales it back to 720x480. The end result is obviously not as good.
iMovie 06 and iDVD 11 is a "lossless" combination.

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