Doesn't Win XP MCE support your TV tuner card at all? Or does it have a limited support?

You need some kind of TV-in to capture video from it. It could be your TV Tuner or some other card.

Alternatively you may connect your VHS to a MiniDV camera and capture digital video from the MiniDV camera.

Movie Maker is a part of Windows XP. In my experience it is not the best video editing alternative. I used it once with a miniDV camera of my friend and I wasn't satisfied. Although it was free unlike rather expensive products from the leaders like Adobe, Pinnacle, Ulead. But I suggest you to try them first before buying. If you have few tapes and don't have a video camera, then MovieMaker might be your best choice.