VHS tape -> DVD recorder -> PC edit advice...

Hey all,
Greetings from the "tarheel" state of north carolina.
Want to make movies from a ton of family videos. Have a Lap top computer with Pinnacle 9.4Plus. I have made some movies and put them on VHS tapes but want to go DVD. I'm thinking a DVDR/VCR/HDD is best way to go.
On a budget so I don't want to get a DVD Burner for computer yet. My current vcr doesn't have s-video out so that's why I'm thinking about the VCR in combination with DVDR/HDD.
Here's the general idea.
Take my VHS tapes
Record them onto HDD and edit with chapter/markers. Make a playlist of rearranged chapters. record the rearrangement into DVDR. Import the recorded dvd into PC and edit with effects like transitions, fades, etc. Output the new movie using s-video from compute rto dvdr.

Any inputs most appreciated.

I can see no probs with transfer on your DVD/VCR recorder, but as for the editing you wish to do you will find the editing rather limited on the standalone unit so I think if you are after transitions, fades etc. you are going to have to edit on your computer. I think personaly I would go down the road of transfering to the computer in the first place, then do my editing and burn to dvd on the computer. Only my preference though!