My 2 cents: One of the advantages with cards vs usb capture devices would be that cards generally allow you to get an uncompressed stream from the VCR while USB capture devices usually compress the stream to your hard drive. Size is of course less but so is the quality. So always use maximum settings (bitrate, resolution etc.) when using a capture device.
Doing some post processing (noise reduction, de-interlacing) is recommended and in my opinion you get better results if you run the raw file through an encoding software instead of burning directly to DVD. And if you go for the encoding software option don't encode for a specific size or a set bit rate since every movie is different when it comes to noise and compression.
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