I've been playing around with it, and it's just not right. The video skips, making it nearly impossible to find the edit points. The audio is there in the preview, and even though I selected 'take audio and video' only the video goes into the timeline. The resulting render is sans audio.
Rather than mess with having to convert and such, it'd be easier to set up to capture from VHS through the DVcam and do it that way. I know the DVcam footage works perfectly.