Yes. A video capture device/card must be used if you want to transfer video from an analog source, such as a VCR, to MyDVD. For a list of approved video capture devices/cards, please go to http://www.mydvd.com/common/video.asp
For information on how to transfer video from a digital or analog video device directly to a DVD disc, please go to http://www.iomega.com/europe/support/english/documents/11868e.html