Plug the RCA 'video out' and 'audio out' connectors of your VHS deck*, into the RCA video and audio connectors on the DVX (the DVX will automatically detect the incoming signal).
Plug the Firewire connector of the DVX into the Firewire connector of your computer.
Turn on your deck, turn on your computer, turn on your DVX.
Open up your capture utility, which will detect the camera if it's properly configured, and capture away.
*if your VHS deck has a Y/C (s-video) connector for the video signal, connect that to the s-video connector on the DVX, instead; you will get a better signal that way.
hmm I've never done an analog to digital conversion on my DVX, but on my Canon camera you had to have the camera in VCR mode in have selected a/d conversion mode.
On the computer you'll need your capture software to be configured correctly which can vary greatly depending on the app. In FCP for example you'd want non-controllable firewire device selected.
Then you just hit play on the VHS machine with the capturing software in whatever mode to capture.
Yeah that is a bummer. The normal cause for this is dirty heads on the deck.
Clean the heads with a cleaning tape, and then try running yoru tape through again - however I woudl recomend not runnign the crinkled part through again, you may need to wind past it manually by hand (once it's all back in the casette).
To wind VHS, you need to stick something in the little hole in the middle of the underside by the spine of the tape to unlock the reels.
You can see the hole in the middle just bellow the 2 white reels here: