Do I even need an analog to digital converter for old VHS?

  I'm just trying the most cost effective way to transfer all of my old VHS & HI-8 material to a digital format for better preservation. Since, why I do not know, PE doesnt allow for analog capture, I need a converter like Dazzle to get my analog source to digital. Or do I?? Can I not just use Windows Movie Maker to capture then import into PE?  Doesnt my capture card do convert?? I have my VCR hooked up via S-video to the card. Is the card not the same thing as an external converter? I just want to know the best way so I dont waste my time only to have to go back and redo everything. Thanx yall

Thanx y'all. Thats where I'm a bit confused. You mentioned "quality DV-AVI". I'm under the assumption that when I capture an analog signal that I set at 720x480 is a "quality DV-AVI". After I have captured and rendered to an .avi file I then import that into PE. Is that what you are meaning? Or is that an inferior quality video file? The capture card I have is a Legacy capture card that came with Pinnacle Studio ver 9. Pinnacle is a great intro level editor, but it sucks because it's slow, unstable and captures out of sync audio which I have to go in and manually sync. I shouldnt have to do that. I'll spend $100-$200 if thats what I have to do to get the results I want. I'm not looking for HD quality here. I simply want to capture all my old analog media, edit it, and burn to DVD and keep on my HD to preserve it all. I want it to be the same quality as it appears on its original medium.I also want to continue to edit and burn stuff using my Mini DV camera as well. I just want an editor thats above intro level, but not as complex as Premieire Pro. I feel that PE will do the job well. My capture card has S-video, firewire & composite inputs. Is my card not what I'm needing??  Or, do I need an analog to digital converter to get the analog material into a raw digital format thats the same quality as the original?
  To help in my endeavors i recently upgraded and built anew PC so that I would have no problems, seeing that video editing does tax a computers resources. My new build is a Quad core 4 gb of RAM system. So my computer power should not be an issue for home editing and what not.

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