You can transfer VHS directly to PRE via a Firewire digitizer such as the Canopus range of digitizers. This gives you the best quality and sound synchronisation.
There are a wide range of cheap USB digitizers available but these cannot be used to transfer directly into PRE. You need to use their supplied software to capture the video and then transfer that clip to PRE like any other media. These USB digitizers and their software are of variable quality so if you go that route check independent online reviews and browse their support forums. Before I switched to the high end Canopus ADVC300 I had quite good results with the digitizer provided with Magix 'Rescue your Videotapes' product - but only after a lot of experimenting with different settings as there was a lot of audio out-of-sync issues with the default settings.
Insanity is hereditary, you get it from your children.
In addition to Neale's excellent suggestions, this article might give you a bit more background, but in the end, it's basically "what Neale said... " http://forums.adobe.com/message/3748554#3748554
Good luck, and happy editing,