The subject has in fact been discussed countless times, but a recent hacking attack on this Board site has, it seems, temporarily wrecked the search function.
It really depends what you want to do with your capture device. But well within your price range, there is the Adstech DVD Xpress DX2, which gets extremely good reviews. You can see it at
http://www.adstech.com/products/USBAV-7 ... BAV-709-EF
I believe the price is in the range of US$100. Its singular advantage is that it has a hardware chip embedded in it which allows you to capture direct to mpeg-2 and have the Ads device do all the work. Normally, capturing direct to mpeg-2 (which is the basic format of DVDs) is a demanding process, and can be especially hard on under-resourced computers which might just give up on the job. This one can capture also to mpeg-4 and a couple of other well-used formats.
We normally recommend you try to capture even analogue video to DV/AVI format, edit in that same format, and only then convert it to DVD-compliant mpeg-2. The DX2 won't do that, unfortunately, but apparently does a very good job of direct capture to mpeg-2.
There are devices out there which unfortunately cost in the region of US$300 or more which can capture direct to DV format, and do an excellent job, but they would be outside your price range.
The usual alternative, though, is to see if your digital video camera allows pass-through i.e. where you can connect a VCR or analogue video camera to its AV connection, and the digital video camera connects to your computer via Firewire. The camera then acts as the capture/conversion device and sends a DV signal of your analogue tape to the computer for editing. But unfortunately not all digital vidcams have this. You would need to check your manual on that.
A final alternative would be to look for a second hand Sony Digital 8 camera which accepts analogue 8mm (and often also Hi8) tapes, and sends them over firewire as DV format. I personally bought a brand new Sony TRV-480E precisely for this purpose. Its price is definitely outside your price range, though you may find one seond hand at a lower price. Be warned, though, that not all Sony Digital 8 models have this capacity. You would need to check carefully if you took this route.
I guess I'm stuck with having to upgrade my capture device.