Best quality means this:
- using a quality VCR
- using TBC
- optionally, a proc amp, audio mixer (for EQ, levels), and other gear as needed (detail, ES10, etc)
- using a quality capture card
- capturing lossless AVI huffYUV
- restoring whatever wasn't fixed in hardware, often with Avisynth and VirtualDub
for video, Sound Forge
and Audicity for audio
- converting to DVD (MPEG-2) or Blu-ray (MPEG-2 or H.264) using MainConcept
- authoring with DVD Studio Pro (DVDSP), Ulead DVD Workshop 2 (DVDWS2), and (for the Blu-ray only) TMPGEnc Authoring Works 4-5
That's one of the best methods, the one I most often use.
Your VCR is good.
If you get an ATI 600 card, I prefer the USB version. The 650 is NOT the same as the 600 card.