Pinnacle Studio v9 has the ability to do what you're asking but as Pat said, you have to have the hardware to transfer the VHS playback to the computer so Pinnacle can do its thing with it, once its transferred to the computer.
There are really good USB 2.0 capture devices available that come with their own capturing and DVD converting and burning software, but all of them require actually playing the VHS in question through the capture device and capturing to the computers hardrive through the USB 2.0 device.
The USB 2.0 capture software converts the video in question to DVD during its capturing process and its very easy to use.
There are other ways to do the same thing but personally I've found the USB 2.0 route to be the best, especially with getting the audio synced right.
Thank you I have the MovieBox USB2. I can capture the tape. Being an "Extended Play" tape the images appear to be at high speed. I do not know how to slow down the images so that DVD playback will be normal