There are a lot of video capture options that allow direct capture from a Composite cable to USB port on your computer for good quality, here are some examples with pricing:
http://www.usbgear.com/USB-Video-Capture.html
Personally I'm using a GrabBeeX+deluxe from the Taiwanese VideoHome company. (Taiwanese are good at capturing video in the same way as Johnny and May, if you know what I mean. :grin: ) It takes advantage of USB2.0 so it's a bit faster (pricier too however) and they have the drivers that support Windows 2000, XP, and Vista. You can use their GrabBee Application Software to capture, or Windows Movie Maker can capture from the Device once you have it installed. Personally, I use a free video editor called Virtual Dub for capturing and editing but it might be too advanced for the regular user.