Well, I don’t use Premiere Pro…bit too expensive for me as an amateur, so I don’t know the program.
Coming from VHS tape, the quality isn’t going to be tremendously good any way, but you can preserve what you’ve got. You’ll be encoding to mpeg2 and I’d set bitrate at something around 5000kbps, and if you are using NTSC (US) settings, you’ll be at 720 x 480, 29.97fps. Does Premiere have templates for dvd-video?
Coming from a better source I’d use larger setting on bitrate, but I think this will be ok for vhs source.
Does Premiere have filters for sharpness and noise? That sometimes helps coming from vhs, but you’d need to test it, and it increases encoding times by quite a lot.