This is a workflow topic.
The key to any good workflow is maintaining quality from the earliest video sources all the way to the final output. This includes the VCR, capturing hardware/software, editing and restoration, compression/filetype formatting, encoding specs, authoring, and final preview/playback.
The best way to convert S-VHS to DVD is to start with an excellent tape signal, using a high-end S-VHS VCR and an external TBC. That will stabilize and clean up the signal. Audio processing hardware is suggested next, for pre-restoring audio.
You can pre-adjust the image quality using a proc amp, to alter color, contrast, brightness, etc. These are as low as $50 for mediocre 1980s units on eBay, all the way up to modern broadcast-quality proc amps from SignVideo or the now-gone Elite Video. The SignVideo units is about $450 new:
http://www.signvideo.com/single_dual...-processor.htm -- just as an example.
Capture to a good DVD recorder or capture card.
Your quality issues -- "the quality is not even close to SVHS direct to the DVD recorder" -- are likely related entirely to the hardware and/or software used for capture. This is a common problem, not all devices are made them same. I'd go so far as to suggest most are really crappy, especially items sold in consumer stores like Best Buy (electronics), Walmart (general retail), or Office Depot (office supply).
If your video looks fine as-is on capturing input, then you can choose to skip advanced restoring (and associated uncompressed/lossless capture) choosing to go direct to DVD-Video MPEG files.
If your edit needs are basic (removing commercials / cutting unwanted scenes), you can use a good MPEG editor like Womble.
More Womble help/information at:
NOTE: I need to update the links on where to buy Womble -- they changed their site a few weeks back, it seems, and failed to provide redirects on their own server -- bad website management.
If you need more complex editing, however, we're back to uncompressed or lossless capture, for best quality.
Hope that intro helps some...
Workflow advice gets pretty in-depth and lengthy. For the most detailed answered,
upgrading to Premium Member status ($20 option) is highly suggested. You'll need to
register for the forum first, if you've not done so already. It's less than the price of a book, but you'll likely find it far more useful!
And the first thing I'll need to know, to get you the custom one-on-one advice that helps your specific need, is a budget. What's the $$$ you're able to spend on this? That's what I'll need to assemble a list of items. There's no point in suggesting items that cannot be afforded -- I try to avoid generic advice, that doesn't help you.
Thanks.