Well, you don't need just software. You will also need a capture card of some kind. Maybe if you have a firewire connection you can directly transfer the video to your PC,
but usually people need a capture card to get it to the PC.
http://www.vcdhelp.com has reviews of various capture cards. Each one has people who love it and hate it. This forum has a lot of ATI users. I use the Dazzle DVC II myself. I love the DVC II, but some people do have problems with it. The DVC II also comes with it's own editing program. ATI cards do not.
MPEG2VCR (
http://www.womble.com) is an excellent MPEG-1/2
editor. It is not perfect. I find sometimes when I use it to demux that it generates garbage in the output video stream. If I remember correctly, if you try to use it on widescreen footage (16:9) you may have problems.
It's not true that VCRs will not be sold in the US after Christmas. Where did you hear that? VCR sales are declining and video renter Blockbuster is scaling down it's VHS rentals in favor of DVDs. In fact, they may at some time soon stop renting VHS tapes. However, people in the US will certainly be able to buy VCRs for years to come. DVD recorders and DVD writers have not penetrated enough into the marketplace to replace the VCR yet.