Dear Tormente,
It must be your lucky day?! Help is at hand. So you are looking to find a way of coverting your VHS videos into DVD, no problems. I should point out that your home movie will not be at the same quality as comsumer DVD's. they will look kind of blurry and of low quality.
Ok, you will need a few things. Unfortunately, you didn't mention what Macisthosh model you have, wil could of help, not to worry thou. I assume that your Macintosh has a Firewire port in it, which will be a big help. Also, you will need a big hard drive, bigger the better. You want at least 60GB.
You said you are on a budget, so bearing that in mind, you will need:
1. A analog capture device
I recommend you buy Formac StudioDV. It's an external device that converts your analogs sources into DV. More infomation can be found on the website.
http://www.formac.com/p_bin/?cid=solutions_converters_studiodv
Unfortunately, it's only MacOS 9 Classic, so you will have to boot into Classic.
2. Once you have your DV material, you need to edit it. I recommend iMovie for this. If not, I recommend Adobe Premiere 6.5, an excellent piece of software. Better and cheaper than Final Cut Pro in my opinion. It's your choice at the end of the day.
3. Once you have your finished movie, you need to 'DVD' it. I myself have DVD Studio Pro 1.5, which is the Dogs Bolloxs (good), but it is expensive. I haven't really used iDVD, so I can't comment, but I here it's a good piece of software. You might need the QuickTime to MPEG-2 codec, which will set you back some $30.
4. You will of course need a DVD burner. I recommend the Lacie External DVD-RW Firewire. A quality piece of hardware, never lets you down, and you will need a copy of Toast for multiple copies.
Sorry I can't quote prices, because it all depends where you get it.
Well, I hope that I was some help...