I haven't used it a ton, but when I do the capture software I've been using with it is what it came with originally.
Since it lists Windows XP and Vista as the supported OS I'm going to guess it is from 2007 or 2008. Just wondering what better more up to date software there is for capture devices. The only requirements I want is to be able to have the live video capture in full screen. To be able to record in 16:9 (I know that is pretty standard nowadays ) and to be able to save to a decent compatible file format that isn't going to take up 2gb for 30 minutes of footage. This is standard definition video we are talking about, being input from either RCA or S-video. So there is no reason it needs be encoded at anything higher than original quality. Almost forgot one big requirement, it has to be Windows compatible. No Mac for me!
It sounds like VHS to DVD Deluxe is capturing the video as MPEG-2, which isn't necessary anymore. VLC should be able to use something like H.264 for smaller file sizes without much compression.