They're right, VHS is just about dead. Sometimes it's hard to even find them in stores. If you've got some home movies though, or anything on a VHS tape you wish to preserve, copying the content over to a DVD is the way to go. The folks at Hardware Secrets can start you off with the hardware you'll need in the first part of their two part article.
"With a PC with a DVD burner, a video capture card (or a video card with VIVO function) and a VCR you can convert all your VHS tapes in DVDs. You may even start working with this and make some money - there is a huge market for this kind of conversion out there for people that don't want to go thru the hassle of converting the tapes themselves. In this tutorial we will show you how to convert your VHS tapes into DVDs. In this part we will cover the hardware part, i.e. the physical installation of your VCR to your PC, including how to install a video capture board to your PC."