Except for direct VHS to DVD recording which will normally compress using Mpeg1 or 2 depending on the machine one of hte best way I know too record too DVD is via a Capture card and then use DVD authoring tools to edit and compress as I need too, however in your case trying to cram 360 odd minutes of VHS onto a DVD I do not believe is the right approach as DVD's are so cheap these days better to use more than one, obtain as best a quality as possible and except the task of having to change the DVD half way through.
It is possible to compress the VHS stream by a large amount and with a little editing get it all on a single DVD, but the losses in quality over and above those already exprenced by using the EP recording option might leave you with an unwatchable result.
Anyway , dug this link out for you to look over, loads of information though the site is a little untidy, keep at it the information is there, you just need to locate it.
http://www.videohelp.com/