I have tested some devices, results here
I also tried the Roxio package but I sold it long ago after testing against Hauppauge USB 2 Live. I also did not like the software. I like Pinnacle software, especially the older versions, I use v. 12, because they have a very simple workflow all in the same software: Capture - edit - make DVD or file. And it seems to support many capture devices.
I recommend you to capture in MPEG2 if you only will do basic editing (cutting out parts). MPG2 files are also the best to use for making DVD´s. If you want to make MP4 be careful, you need to deinterlace it to be computer-ready, and this demands computer-power and time. I use the software "Handbrake" for that ( setting: filters, deinterlace = slower ).
You can also make MP4 directly in Pinnacle but the result is not as good. Avoid all the "converters" on the software market.
If you do not know how to make a good MP4 file the best option is just to use the MPEG2 files and play them on a pc with VLC Player and remember to enable de-interlacing ( Tools, settings, video, deinterlace = automatic. ) choose yadif method.
You write "I had a lot of tracking issues along the top bar of the screen (Not from VCR)."
Maybe it is from the VCR but not visible on a TV-set.
I think you need some kind of TBC ( Time base coorection ). I have a Panasonic DMR-ES10 that I use as pass through. I have very good results with that, it stabilizes the picture and also has some noise reduction. For old tapes, and tapes played over from other VCR´s it is really good. Very stable picture.
For tapes in very good condition a VCR with built in TBC is better, because they do not need so much TBC and NR as the ES10 supplies.
However a good VCR with TBC is hard to find and you can get very good results from just a good normal VCR ( good brand Panasonic or JVC ) and a Panasonic DMR-ES10.