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Transferring VHS tapes to DVD (Windows Movie Maker)?

I've been researching... never done this before and I wanted to transfer some home videos to dvd.

I know that I have to purchase an analog capture device w/ a USB to connect my VCR to my computer (because I don't have a dv camera) to record and convert to digital format

I want to use the editing process of Windows movie maker and Windows DVD maker

I've been told that I need to convert my video to the correct format in order for it to import into Windows movie maker... any suggestions? what format does it need to be in? people were having problems with avi... from what i researched

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