u only need to get either TV Tuner card or Capture Card...
TV Tuner cards cost aroun Rs.2000 to Rs.4000/- , and and i dont have idea abt price of Capture Cards.
u can get good quality from good TV Tuner cards like Pinnacle, Aviosys, some of these record directly in mpg format.
i have converted some video cassettes to VCD, picture quality is good, but i have not done it myself, my computer dealer has a Matrox Graphics Card (i dont remember the model, i think it's G 550...) which is an All in One card, it's a Capture Card, Graphics Card, TV Tuner, TV out all bundled in one!!!! it has a very good software and it can also burn CD/DVD. But this cards costs some Rs.12000 or Rs.14000....