Also, as I say at the end of the video, this isn't the only way to digitize content from video players. If you have a camcorder with video pass-through capabilities (check your camcorder's manual to see if it does), you can simply string video and audio cables between the output device (a VCR, for example) and the camcorder and then connect the camcorder to the Mac as you usually do. Then just launch iMovie and capture as you like.
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Update: In the video I incorrectly state that Easy VHS to DVD captures video as MPEG-4 files. In truth, it captures this content as MPEG-2 files. When you send the video to QuickTime Player, the video is converted to MPEG-4 (using whatever codec you have that performs that conversion). When you choose Edit With iMovie, the video is converted to the AIC (Apple Intermediate Codec) format.