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Introduction
This webpage will be helpful to those who are interested in creating video files in their computer. To do this, one needs to use a video capture device to capture video clips from a VHS source. This will then transfer video files on to the computer allowing on to view them from the computer monitor. In addition, the video file can also be converted into a different format. Formats like MPEG can be used to create video cd's.
Requirements and procedure for capturing video clips from VHS source into the computer.
Hardware required:
Software required:

Procedures:
Compressing AVI format into MPEG compression format
When the source is captured in AVI format, the captured uncompressed AVI file will be very large(approxiamately 100MB per minute). This can easily eat up your harddirve if you do not compress it into a smaller file. The easiest way is to convert it into MPEG(Moving Picture Experts Group) format. This will save you alot of harddrive space since the compression ratio is about 10 to 1(100MB will be compressed into 10 MB), without losing picture quality. There are many software outthere that will do the compression. The one that I use is Xing Mpeg Encoder by Xing Technology. The encoding process takes about three times the video length. If you don't want to go through this tidious encoding process, you can just buy the video capture device that will do Mpeg encoding in real time. In other words, you will be capturing video clips in Mpeg instead of AVI format. The drawback to this is that picture quality will not be as good as being captured with AVI initially. Also, these Mpeg capture cards runs between $300 to $1000(hope this price doesn't burn a hole in your pocket) in comparison with sub-$100 AVI capture cards. The cheapest Mpeg card that I can think of is Snazzi by Dazzle(around $300).
Creating Video CD 
Besides saving harddrive space for compressing AVI into Mpeg format, you can also create Video CD since it uses Mpeg format. Some people like to convert their home videos tapes into video cd, since its quality does not degarade like tapes do.
hardware requaired:
Software required:

Procedure:
Once finished making video, you can view it in your computer using software like Xing's Mpeg Player, or you can view it in your TV but you'll need either a Video CD player, or DVD player that also support Mpeg deocoding. I have Sony DVD player and it plays Video CD perfectly.
There is a faq site if you have any quations concerning video cd.