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There are combo VHS/DVD-r players out there, for, at the most, like $150.00.. once your videos are transferred to "digital", you can do what you want to, eventually, on your computer (like menus, or whatever)
*Shira* makes a good point about the copying/then giving away part.. maybe, best since you have students, to do the lending-library option. From what I know about copyright/piracy issues, one is allowed to make one copy as a personal back-up, before breaking any laws. It's the distribution of your left-overs that may end up being illegal.
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