Thanks for the advice, but not even OBS Studio will work, by that I mean nothing seems to happen when the capture device is selected. All was working fine with it about 2 weeks ago when one morning I decided to try using my S-video cable to see what improvements I would get from using composite. I think I should've unplugged the device and switched off the VHS recorder but I just took out the device from the USB port and swapped over the cables and used the composite audio cables to inserted them into the outputs at the back of the VCR and then inserted the S-video cable into the back of S-video out at the back of the VCR also, plugged the capture device into the USB port and I was able to get a signal though the image was cropped and missing a large portion of the top and bottom part of the frame. I then disconnected the wires and decided to go back to using composite, but after that I could no longer get a signal. When you go select the video capture device from the +symbol at the bottion left corner of the screen, nothing else happens except a blank (black) screen.I can't say if it will work with your capture card, but for the initial capture, try OBS Studio. It's very flexible, which in turn makes it not hugely intuitive but once you get it set up to "see" and "hear" only the source you want it should grab your incoming video and audio and encode it - using H264. As I say - set the capture up to match your output resolution (PAL = 720x576).
Once you have your video on the PC Hard Drive then, if you already have it, Corel VideoStudio should allow you to import the captured video, do some editing and make you your DVD compliant output, either as a .mpg (mpeg2) file (which will then need authoring) or, if you are happy with the options offered, an authored DVD-Video with optional menu and chapters.
Or, for a free DVD-Video authoring tool which will encode properly (if necessary) and will let you make a menu and add chapters if you want - but does NOT offer any editing - DVDStyler.