The DIY route is very time consuming, I've done a lot of this. I use a Dazzle capture device (the medium priced one, there are 3 of them) and Pinnacle Studio 14 for capture/editing.
Minimum requirements are 4Gb RAM and a processor of 2Ghz. Video card makes little difference to processing as it's for display only.
As I said, it's time consuming, if you can find a company to make cheap copies, it may be worthwhile. Or, as Stoneyboysteve has pointed out, the 'one click' machines may be ideal for you.