I just check the settings I used to capture my VHS tapes.
Video: 352x480, NTSC (525) 3.90 M Bit/Second
Audio: 48.000KHz, 16 Bit, Stereo
I'm using the ATI capture (MMC) version 9.02. I used version 8.x in the past.
If viewing the video using Windows Media Player, the video has black bars on either side (my resolution is 1024x768). It will appear different if your resolution is different.
What is your sound card? Can it handle 48.000 KHz? Maybe try it at 44.000 KHz to test.
You could also add the video to your DVD Authoring program to see if the sound track is there.