CVD or VCD?

Anyway, you need to capture the videos, using capture card. I recommend that you spend tons of HDD while capturing and use Huffyuv as your capture codec. Then after that, use TMPGEnc to encode the video and burn it as VCD (if you meant VCD) using Nero or similiar tool.

Quality wont be very good as VHS quality is kinda bad -- even that it doesn't look that bad when watched from TV.

In our article section, there's a guide how to capture music videos and it applies to other analog stuff, like VHS movies, as well. It has some info about the cards (you need to buy one -- slightly more expensive Hauppauge cards, not the cheapest ones, should do the trick) and tools, etc.