I don't know if there is software for enhancing picture quality of old vhs tapes when you capture for dvd burning. I looked around some of the forums and did search. Problem is I wouldn't know proper term for it.
Keatsie- I haven't heard of any to date myself. I'll be watching your thread for answers. Sorry!!! The thing I found is; if the vhs tape has been used numerous times the value of the images depletes... Also: I had a problem with the tape going from color to black and white then back to color. I still haven't figured that one out. I'm using a Pinnacle DAZZLE-90 which has a USB plug in to my computer.
In a nutshell- for cleaning up anolog thru software the best thing to do is capture as avi then framserve this to the encoder of your choice with the filters, settings , enhancements you desire. This method requires a lot of time, experience, and know how. The encoder is what is doing the work as it's converting your avi to dvd compliant mpeg. IMO the better solution is to clean up the vhs source thru hardware before it gets to the encoding stage. By using time base correctors, video processing amps and other image enhancers one can up the source in real time.