Sarah, yes you should stick with the software that came with the device. They are sold together and probably only work together. You might try googling on the device or software for recommendations on settings. I see a number of pages, many of them in Dutch.
Some general guidlines:
• Format - be sure to choose the proper video type, if it doesn't auto-detect. PAL, NTSC, or SECAM.
• Copy "protection" - some VHS tapes have used analog techniques to discourage copying. In the US, Macrovision protection is fairly common. It can be corrected by most video capture hardware and there may be a switch in the software for it.
• Bitrate - high-quality DVD video streams can run 5 Mbps or higher, but consumer-grade VCRs can only put out an image that is equivalent to about 3.5 Mbps max. Set the capture bitrate too high and you are just wasting space. Set it too low and it can degrade the quality.
• File format - it's ideal if the capture is stored in MPEG-2 since it can then be written to DVD without conversion (just authoring). If the video requires conversion, quality can be lost in this step unless care is taken.