Ingest: Use the VHS player to play to a mini DV camera, use that camera as a pass through to capture via fire wire to the PC in DV quality with standard DV project settings.
Do not deinterlace!!! From the original 240 LP vertical resolution (VHS quality) you throw away half by deinterlacing ending up with only 120 LP.
Alternatively have a look at some Canopus ADVC solutions for analog ingest, like the 110.
Hauppage is not usable with PP, you need fire wire for capturing.
Harm Millaard