That's a low-end VCR, paired to one of the worst (if not THE worst) capture card made.
See also:
http://www.digitalfaq.com/forum/vide...ing-guide.html
And remember:
http://www.digitalFAQ.com/forum/marketplace/
You want a good VCR, with some sort of TBC/TBC(ish) between the VCR and capture cards, followed by a quality capture card. Trying to do anything else will look miserable at best (ie, what you're now seeing), entirely fail at worst.
Good gear needs a budget, but this isn't a forever purchase, just a project purchase. Buy it, use it, resell it.
You're on the right site to learn, get a crash course of VHS transfer requirements.