Before you go this route, I'd suggest looking at buying a DVD-Recorder which is a much less problematic way of achieving what you want.
However, to do it on a Mac you'll need a "capture device" (such as a Miglia or Eye-TV gizmo) capable of converting your analogue VCR signal into digital format. You'll also need lots of ram and disk space to store the huge files. Finally, to get it on to DVD, you'll need an authoring program such as iDVD, Toast or DVD Studio Pro.
DVD SP is the only one of these really designed to handle feature length movies. If you want pretty menus and you have the money, good luck. I'm a huge Mac fan and user but personally I archive all my tapes on a trusty Panasonic DVDR

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