Need a good system/software for VHS to DVD

OK, I have been several places with rather specific questions, but I am finding myself getting more confused. Here is what I really want to do and how I plan (need help here) to do it. (Please stick with reading this long all-in-one post and help me out.)

I want to copy mainly home VHS tapes to a DVD. I want the highest quality possible (i.e. I don't want to loose quality from the already somewhat questionable quality of the VHS tapes). I want to do some video editing (simple titles, splitting clips, etc.) and then Probably some authoring to combine the tapes. So I am thinking 3 or 4 steps to keep things simple:

1. Capture the video to a hard drive
- VHS player or camcorder for input (I have both)
+ including the original camcorder used to make the VHS tapes
-> + which would be the best device to use for input?
- Capture Card/Device
+ consondering something like the Canopus 100 Converter
-> + will this give me the best input with the least problems?
- actually, I'm really not sure how these devices work
-> + with no software, what to you use to get the video in?
-> + what kind of format is stored on the hard drive?

2. Edit the video on the hard drive
- Don't need anything too fancy here - just doing basic editing
- Am considering something like the MS Movie Maker 2
- It's free and seems to have all the basic features I need

3. Burn the CD / DVD
- OK, here I want a good/best burning program
- One that is somewhat easy to use, but I want a lot of features
- Nothing too fancy, but one that does everything one would want

4. Now go back and merge a bunch of the DVDs together
- Again here, I was a good/best DVD authoring program
-> + do authoring programs typically include DVD burning?
-> + or do I need to use the burner from #3 above?
-> + or if they do good burning, do I need #3 above?
-> + in other words, is it best to separate #3 and #4?

OK, I would appreciate some advice on how to proceed here.
- I want to backup a lot of VHS tapes for my wife's organization
- I want to help my father-in-law get his VHS tapes to DVD
(actually most of the above, I'm setting up for him)
- I want the flexibility to combine the above home movies
- I want the flexibility to edit my sister's DVD home movies
(which she paid to have created from old 8 mm movies)

And lastly, I won't say price is no object, because I don't want to get carried away with this. On the other hand, I do want the BEST material I can get (within price reason) -- good products that are supported well -- just good, high quality stuff -- STUFF THAT WORKS without a lot of fooling around.

And so, could I get some suggestions/feedback. Even on the above process -- is there a better way to do this -- am I getting close.

Again, sorry about the long post. Thanks for listening.