VCR to MPEG/AVI/DIVX

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I have a few old concerts on tape which I am worried will soon deteriorate. The tape was made in 1991, so it has done well to last this long.

Can someone please tell me exactly what I will need (software & hardware) and how I should set up the system so that I can record audio and video from the VCR to whichever file format is best. I'm looking for about 3 hours of movie, so it needs to be pretty well compressed.

Thanks
 
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