Hello, and welcome!
According to lordsmurf's post in VCR Buying Guide, your model sort of has line TBC ability such as anti-tearing.
http://www.digitalfaq.com/forum/vide...html#post37135 Not familiar with the DVP3000, so cannot comment. Usually, what is said on the forum is you either have a VCR with Line TBC built in, or (when you don't) you have to try and get some of the benefits from a DVD Pass thru like Panasonic ES10 or 15. But, the statement about your model from the link mentioned says it already does that. So it seems you probably have as much line TBC as you can get without finding another VCR.
Since you are using ATI AIW, the most you can do is S-Video (Y/C) and in standard def (720 x 480, assuming NTSC capture). Those DVHS machines can output HD resolutions via component. However, many on the forum would say that it is best to stick with the native SD resolution of the medium we are working with and do S-Video at 720 x 480. If you wanted to capture at higher res, you'd need a more modern capture device, which is likely not as good at capturing analog video as the ATI AIW does.
FF TBC is of course highly recommended. However, if you have really good tapes recorded on SP and well preserved, you may get lucky trying to get by without one. May not be 100% successful, but you may have some or much success. Without FF TBC, you could expect a bit of audio/video sync loss when you encounter some bad frames on a tape. Of course, you can try to compensate for this somewhat with
Virtualdub capture settings. Find the
Virtualdub Capture Guide on this forum, and be sure to get the best settings to try and handle such a situation if it were to happen.
The ATI AIW card you have should provide internal proc amp controls, i.e. adjusting brightness and contrast so you can capture within gamut and not have levels too dark or too bright in the Virtualdub preview histogram. That's all I've ever needed. I have a FF TBC with proc amp abilities. However, I leave it at neutral settings and use my AIW card proc amp controls to adjust brightness/contrast. So that may be all you need. If you are looking to fix things like bad color, you may be best not messing with that with a proc amp, but instead using the tools available in Virtualdub filters and Avisynth plugins to fix color issues. Much more you can do there compared to a hardware proc amp. That's not to say you cannot do that. Some on the forum use hardware proc amp. They may also have a good set of eyes that really knows what to look for when previewing video. Others have better luck in post processing using color analysis tools to help us find the color problems. Just saying that software can do quite a lot in that department, and there's so many tutorial style posts on this forum with example videos to show you what tools to use. Also, VHS is notorious for being inconsistent with color. So if you try to fix color in a proc amp for one part of tape, you may find it's not the same settings you'd want for another part of the tape. In software, you can break the video up and make adjustments when encountering things like this.
The typical order of things is Line TBC, Frame TBC, proc amp adjustment.
Best of luck to you!