I know how you feel! I have wanted to do the same for a while but it is a bit costly! There are 2 ways to do this!
The easiest is to convert the VHS to DVD and then rip the DVD to the computer! To do this you will need a DVD/VCR Combo Recorder! This is pretty simple because all you have to do is put in a Blank DVD-R/RW (Writable/Re-Writable) and your VHS and then push Record! The Tape will begin to play and will Write onto the DVD! After the tape completes, you have a copy of your movie on the DVD! All you have to do now is insert the DVD into your computer and RIP (Copy) the movie to your computer!
A Standard VCR/DVD Combo Recorder will cost around $150
The Second option is to buy a Special Video card that has a RCA Input with it! Then you use the software that came with the card to Record the input!
A Video Card with an RCA Input can cost more than $200 so its not the cheapest option!
I know you would like to do this a cheaper way but its the only way!