A very good way to do this is to get a mini DV camera. Even a really cheap used one will work. Almost all of these have a "pass through" feature. This means you connect some source (like your VHS player) to the mini DV camera's "video in" jack and then you connect the camera's Firewire to the computer. iMovie will sore the video into a DV format file. Then you edit using iMovie. If you don't like iMovie Final Cut Express will do the same thing. A cheap camera works fine because you are no using the lens or sensor so these don't matter
There are other video converters on the market but
- you may already own a mini DV camera
- the quality of the conversion is very good with no compression artifacts
- If you put tape in the camera you can make a backup at the same time
The advantage of using DV format is that when editing there is no generational loss many of the other converters produce formats that are not as well suited to editing as is DV. Many of the products on the market are targeted to people who are transferring hollywood movies from VHS or recording off the air broadcasts. People doing this are not going to do much editing and don't need DV format. If you are going to edit your own tapes I assume you want to capture to the best quality format possible. I just copied over about 20+ hours of old VHS tape and some 8mm tape too. It's all on DV tape now.
Another neat thing about DV is that it carries time code so it can be use be nonlinear editors. These editors don't have to actually move video data ntil the final render is required.