Being the geek that I am, I'm interested in the technical details of this project - what VCR you're using, what capture device, software, etc.

Ok, well I'm using a JVC HR-S7600EK S-VHS PAL VCR, connected to a PC with an ATI All-In-Wonder 128 AGP card via an S-Video cable and Left & Right audio phono leads.

I'll be capturing the video using VirtualDub with the Huffyuv 2.1.1 codec and uncompressed WAV audio. From that I'll use and AVIsynth script to edit down and process the video (if needed, I'll likely leave the hard interlace as it is originally captured) and frame-serve it HC MPEG2 Encoder 0.23 for the MPEG encode, and BeLight & BeSweet to encode the AC3 audio, which will then be multiplexed together with ImagoMPEG-Muxer 1.1 I'll then use GIMP 2.6.7 to design the DVD menus and DVD-Flick 1.3.0.7 to author and assemble the final DVD. I'm not sure at the moment whether it will be a single or dual layer DVD, or even two single layer discs (which the retail DVD is). I will have to do some quality tests to settle that.

I know you recommended & used the Lagarith Lossless video Codec for the Evil Dead Laserdisc capture, and I did test this out as well as Huffyuv, but I was getting dropped frames with Lagarith, but none with Huffyuv, really it just comes down to compression, the quality between the two is virtually identical by the time you get to the finished DVD, so I'm happy to stick with Huffyuv.

I recently used this process to capture two 2hr NTSC video tapes, which I successfully captured & authored to DVD (and for anyone out there who's tried to capture an NTSC/PAL-60 signal with a PAL VCR connected to an ATI All-In-Wonder 128 AGP card knows that's really not an easy thing to work out, as the card doesn't really support PAL-60, although it can be done as I managed it!)

This process is a combination of these two guides;
http://dvdguide.ennik.com/
http://www.doom9.org/capture/capturing_vdub.html