Transfer and edit of VHS tapes

I am re-starting a delayed project I began several months ago, transfering and editing VHS tapes to DVD.  The support from the forum was extraordinary, and I'm recreating what I learned to begin anew.
There is one item that I never was clear on, but would be key as I manage the initial transfer process:
Would it be overall more efficient to (1) transfer each VHS in its entirety, and then select/edit digitally clips that will find their way into a final file for DVD, or (2) go thru a painstaking process of choosing and transfering individual clips directly from the VHS player?  Note that I'll probably wish to transfer the tapes in their entireity anyway for archival purposes.
I have upgraded to WD Caviar Black drives to reduce latencies, etc. but am not sure that working on large files will be efficient.  Also, I'm currently using PE ver 4.  Is there annything in later versions that would make an upgrade compelling?
Some real-world perspective would be much appreciated.
Thanks,
Julian
PS:  I'm discouraged to not be able to find a record of my prior communications with all the fine advice from the forum.  Am I missing something?

The one drawback to the model 55 is it is one way from tape to computer
If that is the only direction you wish to use, you don't need the more $$ two way model
Do also plan ahead for offline storage... IF you think you will ever need the AVI files again
DV AVI is about 13gig per hour, and 1 or 2 Terrabyte USB drives are a good way to store many hours of files when you are done (if not edit, due to transfer speed)
Also... use that USB external to make a FULL backup of your boot drive
Hardware crashes or virus infections happen, so you should buy AND USE software to make a full backup of your hard drive to an external USB hard drive... plus, making step-by-step backups during a new install or major program addition makes it easy to go back a step if something doesn't work
This backup and then restore is, of course, only to the same computer with a new drive (or the same drive as long as you don't mind writing over everything) since doing a restore to a new computer won't work due to Windows and many programs having activation information that is keyed to your hardware (which is why Windows will force you to RE-Activate if you change very much hardware)
The product I use is at http://www.terabyteunlimited.com/image-for-linux.htm
Image runs off of a bootable CD via Linux (the Zip you download includes a program to make the bootable CD) and it reads EVERYTHING on the drive, even the hidden registration information, so everything is restored when needed... and you may restore the image to a brand new drive in case of a crash, and not have to re-install anything
Please note that I own no part of Image, and I don't get a referral fee (that is just a plain web link) but I use the program and it has saved me a LOT of trouble when I had a hard drive die... and I was able to restore everything and not have to re-install or re-activate a single program, from Windows on up

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    Here's what I did, more as an accident, rather than a thought out process to spend big bucks, or get the best possible quality on conversion.
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    One thing for sure, my family and friends get a hugh kick out of seeing themselves (as they've grown older over the years).
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