If you are connected via Firewire, that is your only option...DV PAL. Your BEST bet would be to run it through a TBC and capture via a higher end card like the AJA LHi....capture as ProRes PAL or DV50 PAL. But, seeing as you only have that camera..DV is your better bet. DV was a superior format to VHS anyway...so you are going up in quality. But you are starting out low in quality, and anything you do to capture this footage will be compressing it.
There is no other capture setting that will work with your current setup.
Thanks for the feedback Shane.
It all comes down to money and what you can afford in the end, doesn't it? I'm limited to what I have.
I do have a Canopus ADVC110, but I've found the D8 actually does a better job. "I've had a VHS tape that was unwatchable until I passed it through the D8.". I tried passing that tape through the ADVC110 and it kept dropping out. I also have an old TBC card in an Amiga 2000 (that still works) but it's all analogue.
I realise DV is better quality than VHS, I just don't understand why some people claim it's "lossy".
Which is why I thought I'd ask about it.
So none of these other options is better, or would work?
Again, thanks for taking the time to answer.