Remember to refer to the guide at
http://www.digitalfaq.com/guides/vid...k-hardware.htm
SHARP is a worthless setting 99% of the time -- it just makes the video look noisy. Only when you have a severely soft/blurry VHS tape does this really help.
NORM / AUTO is the best setting. It removes most true noise without removing detail.
QUICK NOTE: It does need to be mentioned, however, that the psychovisual human nature sometimes confuses noise with "detail", so you'll find people complaining about JVC VCRs being "soft" sometimes. In almost all cases, they do this in comparison to another crappier VCR, which integrates noise OR artificially sharpens the image. Even some of the best VCRs do this, such as the Panasonic AG-1980P -- by default it is artificially sharpening the image at its "0" slider setting.
I almost never use Digital R3, personally. I don't think it works as well as true image sharpness enhancers, detailers or resolution boosters. In my observations, sometimes the R3 just adds noise on the edge instead of actually doing much sharpening. It has helped, however, on some tapes. Let your eyes be the best judge.
SOFT image setting is best used for animation or severely grainy tapes. There is resolution/detail loss on this filter, although it's observable effects (again, most psychovisual stuff!) can vary from tape to tape and person to person. Again, let your eyes be the best judge, although keep in mind that this setting should be used sparingly. Unless you're converting a massive archive of cartoons and/or grainy tapes, that is!
Leave TBC+DNR on as much as possible. It removes the much-hated (at least by me!) chroma noise, that ugly red/blue misty looking noise on screen. Only when the TBC causes jitter should it be left off.
The video stabilizer often causes just as many problems as it fixed. Only use when necessary. It does not work at the same time as the TBC+DNR, so you have to choose. If the TBC caused shaking, note that you don't necessarily need the stabilizer. The mere act of disabling the TBC tends to correct it. On tapes like that, I switch to a Panasonic AG-1980P. That happens more on the 9000 series machines than the SR-V10. (In all fairness to JVC, however, that may be an issue with my specific 9800 decks, and not all 9600's and 9800's.)
For the audio settings, keep it HiFi unless you hear buzzing/fluttering noise in the audio. Switching to the mono linear track often helps. You lose some fidelity and clarity, but you also lose the obnoxious audio noise.
... and I think that answered everything?