some newer model dvd players (not blu-ray) have built in burners, perhaps someone you know owns one of these? if you're handy with the computer, you can capture the footage from most VHS tapes, format it on your computer for a movie and export it to a DVD. there are also businesses that can do the transfer for you. i'm not sure where you live so you may just want to Google it (VHS to DVD transfer).
as far as scratched DVDs, i don't know if there is a place like this in your area or not, but in Austin, TX there is a store called Planet Replay that will resurface your DVDs (removing scratches, fingerprints and the like) for around $1 a disc. its not always successful b/c sometimes the amount of damage is too great, but its worth investigating if you don't want to just go out and replace all your DVDs.
i hope this helps you!