I'm in the same perdiciment. The problem is, my family wants to keep all their VHS's even though we don't even have a working VCR in the house ~.~. About 150 in total (including some commercial ones). I have an eyetv hybrid but that would be far too taxing on my system. Since I would have to capture, then edit, then render, then burn all the DVD's. So i'm just going to get a VHS to DVD converter and be done with it.
But since you want greater control, than you'll need an external capture solution. Something like the EyeTV Hybrid like I have would work good. Alternatively you can get the Turbo.264 which will do hardware based encoding and free up your system for other things. Elgato has a special going on now where you can purchase the EyeTV Hybrid and get a free Turbo.264, which i'm kicking myself for because this deal came out right after I bought the EyeTV hybrid from Apple.
If you have a firewire camcorder even the basic ones i've used have pass through capabilities, where you simply plug your vcr into the camera and the camera into your machine via firewire. After all this, something like iMovie will work pretty well for creating the final output.