The most critical component you'll need is an adapter that will connect between the computer and VCR. The one I'm using here is the Elgato Video Capture
; it's around $80, and I chose it because it's compatible with both Macs and PCs. You simply connect the RCA connectors to the output of your VCR, and connect the USB end to your computer.
For some inexpensive alternatives to the Elgato Video Capture, check out the Hauppauge USB-Live 2
or the Diamond VC500